India targets US$ 100 bn in auto component exports

The Indian auto component industry aims to boost exports to US$ 100 billion within the next 7-8 years, rising from US$ 21.2 billion in FY24, as revealed in the latest report by Boston Consulting Group (BCG) and ACMA. As per the report, by strengthening its focus on traditional components, India has the potential to generate an additional US$ 40-60 billion in exports by prioritizing 11 key product families, targeting the US and European markets.

India’s auto component industry is poised to achieve US$ 100 billion in exports over the next 7-8 years, with a primary focus on the US and European markets, according to a joint report by Boston Consulting Group and the Auto Component Manufacturers Association of India (ACMA).  In FY24, the country’s auto component exports reached US$ 21.2 billion, a remarkable shift from a US$ 2.5 billion trade deficit in FY19.

The report, ‘Revving Up Exports: The Next Phase of Export Growth for the Auto Component Industry’, conducted in collaboration with the Automotive Component Manufacturers Association of India (ACMA), outlines a comprehensive strategy to achieve this ambitious goal.

ACMA President Shradha Suri Marwah noted, “We have not only achieved a positive trade balance, but for auto-specific use cases, the surplus is even more pronounced, reaching approximately US$ 0.5 – 1.5 billion. We are committed to sustaining this growth trajectory and have set an ambitious target of US$ 100 billion in exports over the next 7-8 years.”

According to the findings, India can drive an additional US$ 40-60 billion in exports by strengthening its presence in traditional auto components, with a strategic focus on 11 key product families targeting the US and European markets.

Furthermore, by localising production in the emerging EV and electronic value chain, India has the potential to generate an extra US$ 15-20 billion in exports. This includes high-demand components such as battery management systems, telematics units, instrument clusters, and ABS, positioning the country as a key global supplier in the evolving automotive landscape.

The global auto component trade is valued at US$1.2 trillion, with the US and Europe being the largest importers. India’s export share in North America and Europe stands at approximately 4.5%, highlighting significant potential for growth, according to the report.