India’s Auto Component Industry to Hit $200 Billion by 2030: ACMA–McKinsey Study

The $200 billion target will be driven by EV growth, exports, policy push, and stronger global supply chains.

The Automotive Component Manufacturers Association of India (ACMA) marked its 65th Annual Session in New Delhi with a strong focus on supply chain resilience and global competitiveness. Centred on the theme “Navigating Geopolitical Challenges - Creating a Resilient Automotive Supply Chain in India,” the event brought together policymakers, industry leaders, and global stakeholders to shape the future of India’s auto component sector.

India’s Auto Component Growth Story

In her opening address, ACMA President Shradha Suri Marwah highlighted that the industry crossed $80 billion (roughly ₹7,06,246 crore) in FY25, with exports hitting $23 billion (roughly ₹2,03,045 crore). She underlined the need for resilience amid geopolitical headwinds, technology disruption, and sustainability challenges.

A major highlight was the ACMA–McKinsey study, which projects India’s auto component sector to touch $200 billion (roughly ₹17,65,615 crore) by 2030, driven by domestic demand, expanding exports, and new opportunities in EV and connected technologies.

Policy Push for Mobility

Heavy Industries & Steel Minister H.D. Kumaraswamy emphasised the success of schemes like PLI, which have already attracted over ₹29,500 crore in investments and created more than 45,000 jobs. He also highlighted the PM-eDRIVE programme, designed to accelerate India’s shift to electric mobility across two-wheelers, buses, and trucks.

Road Transport Minister Nitin Gadkari reinforced the government’s long-term vision of making India the hub for smart, sustainable, and affordable mobility by 2030, powered by clean fuels and advanced technology. Commerce Minister Piyush Goyal added that India’s ongoing FTA talks with the EU will unlock new growth opportunities, while reiterating support measures like the reduction of GST on auto parts to 18 per cent.

Global Collaboration

European Commissioner Maroš Šefčovič stressed the importance of India–EU collaboration, noting that combining Europe’s tech leadership with India’s manufacturing strength can build resilient supply chains and accelerate climate goals.

The session drew more than 1,200 delegates, cementing ACMA’s position as the voice of India’s auto component industry and a key player in global mobility conversations.