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Key Points

India's auto component exports have grown sharply, hitting $12.8 billion in FY24. The USA and Europe are major buyers, absorbing over 60% of shipments. NITI Aayog credits competitive costs and manufacturing expansion for this success. With rising demand in Africa and Southeast Asia, India could soon lead the global auto parts trade.

Key Points: India Poised to Lead Global Auto Components Market Says NITI Aayog

  • India's auto component exports surged 73% since FY21
  • Drive Transmission Systems dominate exports
  • USA and Europe key markets
  • China remains top import source
2 min read

Manufacturing base and cost advantages to make India a leader in global auto component market: NITI Aayog

NITI Aayog report highlights India's rising auto component exports, cost advantages, and potential to dominate the global market by 2030.

"India's growing manufacturing base and cost advantages position it suitably for potential market leader in coming years - NITI Aayog Report"

New Delhi, April 20

India's manufacturing base and cost advantages will position the country suitably for potential market leadership in coming years, said NITI Aayog in its latest report.

"India's presence in the global automotive component market is relatively small. However, India's growing manufacturing base and cost advantages position it suitably for potential market leader in coming years," said the report.

As per the report, India's auto component exports have risen from USD 7.4 billion in Financial Year 2021 (FY21) to USD 12.8 billion in FY24.

Particularly noteworthy is the fact that since FY21, India saw a 73 percent surge in exports, thereby reflecting India's post-pandemic recovery and increasing global demand for auto component parts.

On the export front, India's exports are heavily dominated by Drive Transmission Systems (DTS), Engine Components, and Electrical and Electronics components, which together account for 53 percent of India's total auto component export share.

Major countries that are India's primary destinations for auto component exports are North America and Europe, which account for 34 percent.

and 27 percent of exports, with the USA standing out as a key export market for India since 28 percent of auto component exports are driven by its large automotive industry and aftermarket sector. Germany is another important auto component market for India, as 7 percent of India's auto component export share is taken up by Germany.

The demand for high-quality automotive parts, especially engine components and transmission systems, is a testament to India's capabilities, combined with the fact that many components produced in India are used in vehicles manufactured by global brands operating in Europe.

Proximity to Africa and Southeast Asia also provides India an opportunity to further grow its export share through such emerging markets where demand for auto components is expected to rise as auto sales and manufacturing grow in these countries, the NITI Aayog said in the report.

Similarly, on the import front, India has witnessed an 80 percent increase in its auto component imports, from USD 6.7 billion in FY21 to USD 12.1 billion in FY24, dominated by engine components and body/chassis/Body-in-White (BIW).

China is the largest auto components supplier to India, contributing close to 23 percent of India's imports, the NITI Aayog report added.

- ANI

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Reader Comments

R
Rajesh K.
This is fantastic news! India's manufacturing sector is finally getting the recognition it deserves. The 73% export growth since FY21 shows we're on the right track. 🇮🇳
P
Priya M.
While the export growth is impressive, I'm concerned about our heavy dependence on China for imports (23%!). We need to focus more on indigenous production to become truly self-reliant.
A
Amit S.
The numbers speak for themselves! 12.8 billion in exports is no small feat. I work in the auto component industry and can confirm the quality of Indian parts has improved dramatically in recent years.
S
Sunita P.
Interesting to see North America and Europe as our main markets. With the right policies and investments, we can definitely become the global hub for auto components. The Make in India initiative seems to be working!
V
Vikram J.
The report is optimistic but we shouldn't ignore the 80% increase in imports. We need to balance growth with self-sufficiency. Still, great potential for job creation in this sector!
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Neha R.
Love seeing India shine in manufacturing! The focus on Africa and Southeast Asia is smart - these are the markets of the future. More investments in R&D will help us stay ahead of the competition.

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