SUMMARY
Technological developments in the automotive components industry, such as electric vehicles and autonomous vehicles, are opening new avenues for the Indian automotive components industry to grow. This is another industry where China+1 strategy can be applied. Africa, with its fast growth rate and emerging middle class, can no longer be ignored by component manufacturers.

Auto parts made in India are increasingly being customised to local specifications as a result of the increasing involvement of international Original Equipment Manufacturers (OEMs) in the Indian market. Indian government has announced $1.5 billion assistance for auto components manufacturing in India. This will give a big boost to exports.

The automotive components industry experienced a 11% YoY growth, reaching Rs. 3.32 lakh crore (US$ 38.4 billion) in the first half of FY25. India’s auto component industry is an important sector driving macroeconomic growth and employment. The industry comprises players of all sizes, from large corporations to micro entities, spread across clusters throughout the country. The auto components industry accounted for 2.3% of India’s GDP and provided direct employment to more than 1.5 million people. By 2026, the automobile component sector will contribute 5-7% of India’s GDP. The Automotive Mission Plan (2016-26) projects to provide direct incremental employment to 3.2 million by 2026.

In FY24, the export value of auto components/parts was estimated at US$ 21.2 billion. North America, which accounts for 33% of total exports, increased by 5%, while Europe and Asia, which account for 32% and 24% of total exports, increased by 12% and growth for Asia remained flat, respectively. The key export items included drive transmission and steering, engine components, body/chassis, suspension and braking etc.

However, a transition is on the horizon for the industry with the introduction of electric vehicles. With more and more people opting for cleaner, safer, and more environmentally friendly methods of transportation, including electric, electronic, and hybrid vehicles, the transportation sector is seeing fresh growth as a result of globalisation. This shift will open up new markets and prospects for companies that make automotive parts over the next ten years.

In addition, analysts anticipate that India’s automotive component market will surpass China’s and become the world’s third-largest.

This workshop will provide an overview of the export markets for auto components highlighting the developing hubs of auto manufacturing in the emerging economies of the world.

FOR WHOM
The program shall be useful for industries, MSMEs, entrepreneurs, existing & aspiring exporters, start-up firms as well as those who are exploring the global markets for their engineering products.

Programme Date: September 18

Time: 3.00 PM to 6.00 PM

Programme Fee: INR 500 (Incl. GST)

PROGRAMME FACULTY
Mr. Suhayl Abidi Research Advisor, GoG-AMA Centre of International Trade and Editor, Foreign Trade Update