Introduction
India’s automotive sector is entering a golden era, and at the heart of this revolution lies the auto components industry — a crucial pillar supporting vehicle manufacturing, innovation, and exports. With India poised to become the third-largest automotive market in the world by volume, the demand for reliable, high-quality components is surging. For businesses and investors, this presents a unique, timely opportunity.
India’s auto components industry was valued at USD 56.5 billion in FY23 and is projected to grow at a CAGR of 8–10% in the coming years. It contributes 2.3% to India’s GDP and employs over 5 million people, directly and indirectly. The country has evolved from being just a low-cost parts manufacturer to an innovation-driven hub for both domestic and global markets.
Key Drivers of Growth
✅ 1. Booming Automotive Sector
India is the world’s largest two-wheeler market and ranks among the top for passenger and commercial vehicles. With EV adoption rising and increasing disposable incomes, the auto industry is demanding more complex, lightweight, and tech-enabled components.
✅ 2. Government Incentives & Support
PLI Scheme for Auto Components with an outlay of ₹25,938 crore
100% FDI allowed under the automatic route
Make in India and Atmanirbhar Bharat initiatives promote local manufacturing
✅ 3. Export Potential
India exported auto components worth USD 20.1 billion in FY23 to over 150 countries. The top export destinations include the U.S., Germany, Thailand, and the U.K.
✅ 4. R&D and Tech Innovation
The sector is investing in:
Lightweight materials
ADAS (Advanced Driver Assistance Systems)
EV-specific components (batteries, motors, controllers)
Click Here: https://growbetpartners.com/auto-components/
Segments with Strong Business Potential
Engine & Transmission Components
Electrical & Electronics
Suspension & Braking Systems
Sheet Metal and Casting Components
Aftermarket Parts (domestic & international)
Emerging Opportunities
🔌 EV Components
The EV boom is reshaping demand. There’s a growing need for:
Battery management systems
Power electronics
Thermal management solutions
🧠 Smart & Connected Car Parts
Sensors, embedded systems, and telematics are becoming standard in modern vehicles.
🌍 Sustainability
Green manufacturing, recyclability, and carbon-neutral components are increasingly being favored by OEMs and consumers.
India’s Competitive Advantage
Skilled workforce at competitive costs
Strong Tier-1 and Tier-2 supplier base
Strategic location for global supply chain integration
Rapid infrastructure growth (logistics parks, expressways, ports)
Challenges to Watch
Raw material price volatility
Technological disruptions requiring continuous R&D
Need for greater standardization and compliance with global norms
Final Thoughts
The Indian auto components industry is not just growing — it’s evolving. From traditional parts to next-gen electric and smart vehicle components, this sector offers diverse opportunities for OEMs, startups, investors, and entrepreneurs. With strong domestic demand, robust exports, and government support, India is fast becoming a global manufacturing powerhouse for auto components.
Abou Us
Growbet Partners began its journey in the field of market research and global expansion with a vision to bridge the gap between international companies and the Indian market. Our expertise and extensive experience have made us a trusted partner for companies looking to enter the Indian market or expand their businesses globally.
Contact Us
Mob- +91 9833967579
Email: info@growbetpartners.com
Website: https://growbetpartners.com
Write a comment ...