India’s auto component industry is at a pivotal inflection point. The industry has seen a period of strong, sustained growth with industry output reaching $74 Bn. The sector, which traditionally saw a trade deficit has turned a new leaf to reach a net export surplus, with exports reaching ~$21 Bn in FY24.
This evolution has been driven by a confluence of factors - cost competitiveness in key categories, a more localized manufacturing ecosystem, and strategic policy interventions. These shifts have not gone unnoticed. A survey of over 40 Chief Procurement Officers (CPOs) from leading global OEMs and Tier 1 suppliers reveals a strong appetite for Indian sourcing, with 80% expressing openness to expanding their procurement footprint in the country.
Yet, cost advantages alone will not be sufficient to propel India to the next stage of export growth. To reach the ambitious goal of $100 Bn in exports, the industry must elevate itself on multiple fronts – building on existing strengths, fostering innovation, and improving agility to meet evolving global standards.
This report presents a strategic roadmap anchored on three critical pillars: positioning India as a global automotive hub, scaling testing and tooling capabilities, and driving innovation, R&D, and sustainability. With targeted interventions, industry collaboration, and policy support, India has a unique opportunity to position itself as a world-class auto component manufacturing powerhouse.
Download our report now
This evolution has been driven by a confluence of factors - cost competitiveness in key categories, a more localized manufacturing ecosystem, and strategic policy interventions. These shifts have not gone unnoticed. A survey of over 40 Chief Procurement Officers (CPOs) from leading global OEMs and Tier 1 suppliers reveals a strong appetite for Indian sourcing, with 80% expressing openness to expanding their procurement footprint in the country.
Yet, cost advantages alone will not be sufficient to propel India to the next stage of export growth. To reach the ambitious goal of $100 Bn in exports, the industry must elevate itself on multiple fronts – building on existing strengths, fostering innovation, and improving agility to meet evolving global standards.
This report presents a strategic roadmap anchored on three critical pillars: positioning India as a global automotive hub, scaling testing and tooling capabilities, and driving innovation, R&D, and sustainability. With targeted interventions, industry collaboration, and policy support, India has a unique opportunity to position itself as a world-class auto component manufacturing powerhouse.
Download our report now