New Delhi, Mar 5 (KNN) The Indian auto component sector has outlined an aggressive growth strategy, targeting USD 100 billion in exports within the next seven to eight years, a significant leap from the current USD 21.2 billion achieved in the fiscal year 2024.
The Automotive Component Manufacturers Association of India (ACMA) unveiled a comprehensive roadmap that positions the country as a critical hub for both traditional and emerging automotive technologies.
A joint report by Boston Consulting Group (BCG) and ACMA identifies two primary growth drivers for this ambitious goal.
The strategy hinges on achieving a two to three-fold expansion in classical vehicle components, including internal combustion engine and carry-over components, while simultaneously developing a robust export-ready foundation in electrification and electronic technologies.
The report, titled “Revving Up Exports: The Next Phase of Export Growth for the Auto Component Industry,” highlights the potential to generate an additional USD 40-60 billion in incremental exports.
This will be accomplished by prioritising 11 key product families, including engines, gears, gearbox parts, rubber brakes, axles suspension, wiring harness, and motors, with a strategic focus on the United States and European markets.
Emerging opportunities in the electric vehicle (EV) and electronic value chains present another promising avenue for growth.
The industry anticipates capturing an additional USD 15-20 billion in exports through localisation of components such as battery management systems, telematics units, instrument clusters, and anti-lock braking systems.
Shradha Suri Marwah, President of ACMA, emphasised the industry’s remarkable transformation. The sector has not only achieved a positive trade balance but has dramatically reversed a USD 2.5-billion deficit in fiscal year 2019 to a USD 300-million surplus by fiscal year 2024.
The global context provides additional perspective, with the worldwide auto component trade standing at USD 1.2 trillion, predominantly driven by imports from the United States and Europe.
Evolving geopolitical dynamics are compelling global original equipment manufacturers (OEMs) to reassess their supply chains, presenting India with a strategic opportunity to establish itself as a preferred manufacturing destination.
Vikram Janakiraman from BCG underscored the importance of strategic partnerships, suggesting that attracting two to three global OEMs to establish manufacturing bases in India could serve as a critical anchor.
Such collaborations would enable domestic auto component manufacturers to gain deeper insights into global requirements, seamlessly integrate into international supply chains, and ultimately enhance India’s global market positioning.
As the automotive industry continues to transform, India’s auto component sector stands poised to emerge as a significant global player, leveraging technological innovation, strategic positioning, and a comprehensive export growth strategy.
(KNN Bureau)
