India's auto component industry is expecting $100 billion in exports over the next seven to eight years, according to a report by Boston Consulting Group.
The country's auto component exports reached $21.2 billion in financial year 2024, marking a significant turnaround from a $2.5 billion deficit in financial year 2019.
The report "Revving Up Exports: The Next Phase of Export Growth for the Auto Component Industry', conducted in association with the Automotive Component Manufacturers Association of India, presents a comprehensive, multi-faceted strategy to achieve this ambitious target.
"We have not only achieved a positive trade balance, but for auto-specific use cases, the surplus is even more pronounced, reaching approximately $0.5 - 1.5 billion. We are committed to sustaining this growth trajectory and have set an ambitious target of $100 billion in exports over the next seven to eight years," ACMA President Shradha Suri Marwah said.
As per the findings, doubling down on classical components, India can potentially add another $40-60 billion in incremental exports by prioritising 11 product families with a focus on the US and European markets.
Besides, capitalising on emerging EV and electronic value chain through localisation today, India can look to tap into additional $15-20 billion exports in components like battery management systems, telematics units, instrument clusters, and ABS, it stated.
"We are at a pivotal juncture, with immense potential to scale. To fully capitalise on this opportunity, major Indian players must aim to expand their exports by five to ten times and achieve deeper penetration into global supply chains," ACMA Director General Vinnie Mehta said.
This expansion necessitates building closer proximity to customers, enhancing testing and tooling capabilities, and gearing up for ESG compliance-key areas where ACMA can facilitate industry transformation, he added.
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