India Gears Up for Global Leadership in Auto Component Exports

NITI Aayog's report highlights India's strategic advantage in the global auto component market driven by a cost-effective manufacturing base. Exports have surged by 73% since FY21, with primary markets in North America and Europe. Rising imports, largely from China, point to a broader industry expansion.

India is strategically positioned for potential market leadership in the automotive component sector, according to NITI Aayog's recent report. With a robust manufacturing base and competitive cost advantages, the country is poised to enhance its global market presence in the coming years.

The report highlights a significant rise in India's auto component exports, from USD 7.4 billion in FY21 to USD 12.8 billion in FY24. This 73 percent increase underscores India's post-pandemic recovery and the growing international demand for its parts, particularly in Drive Transmission Systems, Engine Components, and Electrical and Electronics.

North America and Europe emerge as key markets, accounting for 34 and 27 percent of exports, respectively. The United States stands out, representing 28 percent of the market, while Germany captures 7 percent. India's proximity to Africa and Southeast Asia opens further growth opportunities. On the import side, a notable 80 percent jump reflects a booming sector needing components, with China being a dominant supplier, providing 23 percent of imports.

(With inputs from agencies.)