Leading global automotive manufacturing hub

The growing presence of global automobile Original Equipment Manufacturers (OEMs) in the Indian manufacturing landscape has significantly increased the localization of their components in the country. India has become the preferred designing and manufacturing base for most global auto OEMs for local sourcing and exports.

100% FDI allowed under the automatic route.

For further details, please refer FDI Policy

  • 2.3 %

    Share in India's GDP

  • 3 mn

    Employment generated

  • 18.3 %

    Industry growth rate

  • 1 mn +

    Hybrid and electric vehicles sale

Auto Market in India

The rapidly growing auto market in India is expected to reach $ 300 bn by 2026

Automotive Industry

Automotive aftermarket segment in India is expected to reach $ 32 bn by 2026

Automotive Components Industry

Auto Components industry exports to grow 5X in next 10 years

Industry Scenario

The $51.2 bn Auto Components industry in India is expected to grow to $200 bn by 2026.

Auto Components industry exports, which is currently valued at $13.5 bn, is expected to grow at an annual rate of 23.9% to reach $80 bn by 2026. USA, Germany, Turkey, UK, and Italy are the top destinations for exports.

Aftermarket segment which includes tyre, battery, brake parts, is expected to reach $32 bn by 2026 from $9.2 bn currently.

The overall industry which accounts for 2.3% of India's GDP currently, is set to become the 3rd largest in the world by 2025.

Growth Drivers

  • Expanding R&D hub

    India accounted for 40% of global engineering and R&D activities
  • Emerging global sourcing hub

    Proximity to markets such as ASEAN, Europe, Japan and Korea
  • Cost competitive

    Excise duty reduction in vehicles will spur demand
  • Sixth 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
  • Open

    Automotive Mission Plan (2016-26)

    AMP aims to propel the Indian Automotive industry to be the…

  • Open

    Charging Infrastructure Guidelines, Mini…

    To enable faster adoption of EV in India by ensuring safe, r…

  • Open

    FAME India Phase - II

    To promote faster adoption and manufacturing of Electric and…

  • Open

    Faster Adoption and Manufacturing of Hyb…

    FAME is intended to support the hybrid/electric vehicles mar…

  • Open

    National Auto Policy (Draft)

    This policy aims to increase contribution to GDP, exports an…

  • Open

    National Automotive Testing and R&D…

    It aims to create a testing, validation and R&D infrastr…

  • Open

    National Electric Mobility Mission Plan…

    To emerge as a leader in electric vehicle market globally by…

Investible Projects

Investment Opportunities in Auto Components

  • Projects


  • Opportunity

    $689.07 mn

  • Promoters


  • District


  • Private Projects


  • Govt. Projects



$630.15 mn

Sanand Auto Cluster Project [Ahmedabad]

State (s) Gujarat

$28.23 mn

Inovatiq Engineering Private Limited

State (s) Uttar Pradesh

$14.11 mn

Setting up an Automotive Manufacturing unit in Lucknow

State (s) Uttar Pradesh

$12.35 mn

Technology to curb vehicular emissions by 45 percent and improve fuel efficiency by 30 percent

State (s) Maharashtra

Major Investors

Data on Map

  • Auto Components Industry in India

Latest in Auto Components


Asked Questions

  • What is Automotive Mission Plan (AMP) 2016-2026?

    Automotive mission plan 2016-2026 targets India to be among the top three in the world for engineering, manufacturing and export of vehicles & auto components. You can find more details about achievements, vision and targets on the portal, link. 

  • What is National Automotive Board (NAB)?

    National Automotive Board provides a single platform for dealing with all matters relating to the automotive sector especially on matters pertaining to testing, certification, homologation, administering the automotive labs. 
    For more information, click here.

  • What is National Electric Mobility Mission Plan (NEMMP) 2020?

    The National Electric Mobility Mission Plan 2020 is one of the most important and ambitious initiatives undertaken by the Government of India that has the potential to bring about a transformational paradigm shift in the automotive and transportation industry in the country.

  • What is NATrIPs (National Automotive Testing and R&D Infrastructure Project)?

    NATrIPs is a unique joining of hands between the Government of India, a number of State Governments and Indian Automotive Industry to create a state of the art Testing, Validation and R&D infrastructure in the country. Presently there are 7 testing facilities finalised. They are:
    a) GARC Chennai, Tamil Nadu.
    b) iCAT Manesar, Haryana.
    c) NATRAX Indore, Madhya Pradesh.
    d) NCVRS Rae Bareli, Uttar Pradesh.
    e) NIAMIT Silchar, Assam.
    f) VRDE Ahmednagar, Gujarat.
    g) ARAI Pune, Maharashtra.

View all