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  • From Factory Floor To Global Fast Lane: India Set To Lead Auto Component Exports, Says NITI Aayog

From Factory Floor To Global Fast Lane: India Set To Lead Auto Component Exports, Says NITI Aayog

While exports grow, India’s auto component imports have also risen by 80%, jumping from USD 6.7 billion in FY21 to USD 12.1 billion in FY24.

From Factory Floor To Global Fast Lane: India Set To Lead Auto Component Exports, Says NITI Aayog

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India is on track to become a major global player in the automotive component industry, driven by its expanding manufacturing base and competitive cost structure. According to the latest report by NITI Aayog, India’s current share in the global auto component market is relatively small but steadily growing. The report stated, “India’s growing manufacturing base and cost advantages position it suitably for potential market leader in coming years.” From USD 7.4 billion in FY21, auto component exports surged to USD 12.8 billion in FY24, reflecting a 73% growth, underlining a strong post-pandemic recovery and increasing global demand.

Export Growth Fueled by Key Product Segments

The report highlighted that India’s export growth is driven primarily by Drive Transmission Systems (DTS), Engine Components, and Electrical & Electronics components. These three categories together contribute 53% of the total export value. The strong demand for high-quality engine and transmission parts has further boosted India’s reputation as a reliable supplier. Many Indian-made components are used in vehicles manufactured by leading global automotive brands, especially in Europe and North America.

USA and Germany Among Top Destinations

India exports a significant share of its auto components to North America (34%) and Europe (27%), with the USA alone accounting for 28% of total exports, thanks to its large automotive manufacturing and aftermarket sectors. Germany follows with 7%, making it another vital market for India’s auto component industry.

Strategic Advantage in Emerging Markets

India also benefits from its geographical proximity to Africa and Southeast Asia, regions where vehicle production and sales are expected to grow. NITI Aayog noted that India could further increase its market share in these regions by tapping into rising demand and strengthening trade links.

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Imports Also Rising, China Leads Supply

While exports grow, India’s auto component imports have also risen by 80%, jumping from USD 6.7 billion in FY21 to USD 12.1 billion in FY24. Imports are mainly driven by engine parts and Body/Chassis/Body-in-White (BIW) components. China remains the largest supplier, contributing 23% of India’s auto component imports, the report added.

(With Inputs From ANI)

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NITI Ayog

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