Snapshot
Leading Global Automotive Manufacturing Hub.
Indian Auto Component Industry clocks highest-ever turnover of $74.1 Bn, grows ~10% in FY 2023-24.
The growing presence of global automobile Original Equipment Manufacturers (OEMs) in the Indian auto components industry has significantly increased the localization of their components in the country.
The FDI inflow into Indian automotive industry during the period Apr 2000 to Jun 2024 stood at $36.65 Bn.
100% FDI in the automotive parts industry is allowed under the automatic route.
For further details, please refer FDI Policy
- %
Share of automotive sector in India's overall GDP
- $ Bn
Domestic Original Equipments Manufacturers ( OEMs) Supply
- $ Bn
Auto Component exports
The rapidly growing auto market in India is expected to reach $300 Bn by 2026.
Automotive aftermarket segment in India is expected to reach $14 Bn by 2028.
Auto Components industry exports to grow 5X in next 10 years.
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
The Auto Components industry in India is expected to grow to $200 Bn by 2026.
The auto component industry sized-up to INR 6.14 Lakh Cr registering a 9.8% growth, thus outpacing its highest ever turnover of INR 5.59 Lakh Cr in FY 2022-23.
India is set to manufacture 5 Lakh EV three wheelers, at least 55,000 EV four wheelers and 7000 EV buses by 2024.
The aftermarket turnover in FY 2023-24 of the Auto Components industry stood at $11.3 Bn as compared to $10.6 Bn in the previous year.
Auto Component sales to OEMs, in the domestic market, grew to $62.4 Bn which is a growth of 5.3% over the previous year.
With a 20.1% contribution to the manufacturing GDP, the automotive sector is a top driver of macroeconomic growth and technological development in the country (UNIDO IAP, 2023).
GROWTH DRIVERS
Expanding R&D hub
8% of the country’s R&D expenditure is in the automotive sector
Emerging global sourcing hub
Proximity to markets such as ASEAN, Europe, Japan and Korea
Cost competitive
Excise duty reduction in vehicles will spur demand
Double its Auto Industry Size
India aims to double its auto industry size to INR 15 Lakh Cr by end of year 2024
Favorable trade policy
100% FDI allowed and no restrictions on import-export
Atmanirbhar Bharat
PLI schemes in automobile and auto component sector with financial outlay of INR 25,938 Cr introduced under Atmanirbhar Bharat 3.0
Production Linked Incentive (PLI) Scheme
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi announced the Production-Linked Incentive (PLI) Scheme in the Automobile and Auto Components sectors. The PLI scheme (outlay of $3.5 Bn) for the automobile sector proposes financial incentives of up to 18% to boost domestic manufacturing of advanced automotive technology products and attract investments in the automotive manufacturing value chain. Incentives are applicable for determined sales of products manufactured in India from April 1, 2022, for a period of five consecutive years. The Ministry of Heavy Industries has announced the extension of the tenure of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year with partial amendments. Under the amended scheme, the incentive will be applicable for a total of five consecutive financial years, starting from the financial year 2023-24. The disbursement of the incentive will take place in the following financial year 2024-25. The scheme also specifies that an approved applicant will be eligible for benefits for five consecutive financial years, but not beyond the financial year ending on March 31, 2028. Recent Developments: 1) Total of 115 companies had filed their application under this scheme. Out of which 85 applicants have been approved under this PLI scheme - 18 applicants for Champion OEM Incentive scheme and 67 applicants have been approved under Component Champion Incentive scheme. 2) The scheme has been successful in attracting proposed investment of INR 67,690 Cr against the target estimate of investment INR 42,500 Cr over a period of five years. 3) Apart from Indian business groups, approved applicants for Champion OEM Incentive scheme include groups from countries such as Republic of Korea, USA, Japan, France, Italy, UK and Netherlands.
INR 25,938 Cr
Scheme Outlay
Products
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
Investible Projects
Investment Opportunities in Auto Components
Data On Map
Gallery
