Auto Components industry turnover to reach $200 bn by 2026
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. India has become the preferred designing and manufacturing base for most global auto OEMs for local sourcing and exports.
Leading global automotive manufacturing hub
The FDI inflow into Indian automotive industry during the period April 2000-March 2021 stood at $25.85 bn
100% FDI allowed under the automatic route. The $49 bn (FY20) Auto Components industry in India is expected to grow to $200 bn by 2026.
Auto Components industry exports, which is currently valued at $14.5bn in FY20, is expected to grow at an annual rate of 23.9% to reach $80 bn by 2026. USA, Germany, UK, Thailand and Italy are the top destinations for exports.
Aftermarket segment which includes tyre, battery, brake parts, is expected to reach $32 bn by 2026 from $9.8 bn currently.
The overall industry which accounts for 2.3% of India's GDP currently, is set to become the 3rd largest in the world by 2025.
Auto Components industry exports to grow 5X in next 10 years