A stable government framework has led to the development of the Indian auto-components industry. Accounting for 2.3 per cent of India’s Gross Domestic Product (GDP), the sector employs as many as 5 million people, both directly and indirectly. 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.
The Indian auto-components industry has experienced healthy growth over the last few years. The Auto Components industry exports are currently valued at USD 14.5 bn. India is an emerging global hub for sourcing auto components. It offers a favourable scenario with a trade policy without restrictions on import-export and a 100% FDI inflow.
The auto-component industry of India has expanded by 23.9 per cent to reach a level of US$ 80 billion by 2026.
100% FDI allowed under the automatic route.
Share in India's GDP
CAGR (over 6 years)
Hybrid and electric vehicles sale
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
PM Modi pushes for Aatmanirbharta vision at CII Annual Meeting 2021
India must be aware of new FDI - Foreign Destructive Ideology. Says PM Modi.
FDI equity inflows into India cross $500 billion milestone
FDI India Media Coverages
PM Modi's Keynote Address at US-India Strategic Partnership Forum