A stable government framework has led to the development of the Indian auto-components industry. Accounting for almost 7% of India's Gross Domestic Product (GDP), the sector employs as many as 1.5 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-component industry of India has expanded by 18.3% to reach at a level of $51.2 bn in FY 2017-18. 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.
100% FDI allowed under the automatic route.
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
The total value of India’s automotive exports stood at $13.5 bn in 2017-18 as compared $10.9 bn in the year 2016-17. Growth is further expected to accelerate to 8-10% in FY19 due to pick up in global 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
Under National Automotive Testing and R&D Infrastructure Project (NATRIP) various facilities including passive safety labs comprising of crash core facility and crash instrumentations including dummies were established at ICAT-Manesar & ARAI-Pune
The Indian auto-components industry is set to become the third largest in the world by 2025. Indian auto-component makers are well positioned to benefit from the globalisation of the sector as exports potential could be increased by up to $30 bn by 2021
Will changes in FDI norms lead to more employment??
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