Translate
Snapshot
Leading global automotive manufacturing hub
Indian Auto Component Industry clocks highest-ever turnover of $6.5 bn, grows 23% in FY 2021-22. Auto component sales to EV-sector stood at INR 3,520 cr.; ~1% of auto component sales to the OEMs
The growing presence of global automobile Original Equipment Manufacturers (OEMs) in the Indian auto components industry has significantly increased the localization of their components in the country.
The FDI inflow into Indian automotive industry during the period April 2000-June 2022 stood at $33.53 bn.
100% FDI in the automotive parts industry is allowed under the automatic route.
For further details, please refer FDI Policy
- %
Share in India's GDP
- mn
Employment generated
- %
CAGR (over 6 years)
- $ bn
Auto Component exports
The rapidly growing auto market in India is expected to reach $ 300 bn by 2026
Automotive aftermarket segment in India is expected to reach $ 32 bn by 2026
Auto Components industry exports to grow 5X in next 10 years
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
The $46 bn (FY21) Auto Components industry in India is expected to grow to $200 bn by 2026.
Indian Auto Component industry exports, which are currently valued at $13.3bn in FY21, are expected to to reach $80 bn by 2026. USA, Germany, UK, Thailand and Italy are the top destinations for exports.
India's auto component industry recorded its highest trade surplus of $700 mn in a financial year in 2021-22
Aftermarket segment which includes tyre, battery, brake parts, is expected to reach $32 bn by 2026 from $9.8 bn FY20.
Auto components industry grows 34.8% to INR 2.65 lakh cr in H1 FY23.
The overall Indian auto components industry, which accounts for 2.3% of India's GDP currently, is set to become the 3rd largest globally by 2025.
GROWTH DRIVERS
Expanding R&D hub
8% of the country’s R&D expenditure is in the automotive sector
Emerging global sourcing hub
Proximity to markets such as ASEAN, Europe, Japan and Korea
Cost competitive
Excise duty reduction in vehicles will spur demand
Fifth largest vehicles manufacturer in the world
India expected to be the third largest market by 2026
Favorable trade policy
100% FDI allowed and no restrictions on import-export
Atmanirbhar Bharat
PLI schemes in automobile and auto component sector with financial outlay of INR 25,938 crores introduced under Atmanirbhar Bharat 3.0
Production Linked Incentive (PLI) Scheme
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi announced the Production-Linked Incentive (PLI) Scheme in the Automobile and Auto Components sectors. The PLI scheme (outlay of $ 3.5 Bn) for the automobile sector proposes financial incentives of up to 18% to boost domestic manufacturing of advanced automotive technology products and attract investments in the automotive manufacturing value chain. Incentives are applicable for determined sales of products manufactured in India from April 1, 2022, for a period of five consecutive years. The scheme was closed on 9th January 2022. Total 95 applicants have been approved under this PLI scheme: 20 under Champion OEM and 75 under Component champion.
INR 25,938 cr
Scheme Outlay
Products
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
Data On Map
Gallery
Latest News
Latest In Auto Components
Market Research
Invest India closely works with
Disclaimer: All views and opinions that may be expressed in the posts on this page as well as post emanating from this page are solely of the individual in his/her personal capacity