India’s Auto Component Sector Targets $200 Billion Turnover: BCG-ACMA Report

A new joint report by Boston Consulting Group (BCG) and the Automotive Component Manufacturers Association of India (ACMA), titled ‘Beyond Resilience: Built to Endure. Designed to Win.’, outlines a strategic roadmap for India's auto-component sector to reach $200 billion (₹17.6 lakh crore) in turnover by FY30.

India has emerged as the third-largest automotive market globally, supported by a domestic component industry that expanded at a 17% CAGR to touch $86 billion (₹7.6 lakh crore) in FY26. Local manufacturing now accounts for approximately 70% localisation alongside a net trade surplus. This expansion occurred despite persistent industry shocks, including structural demand slowdowns, pandemic disruptions, raw material price spikes, and restrictions on rare-earth materials.

The sector has set an ambitious target of reaching nearly $200 billion (₹17.6 lakh crore) in turnover by FY30, fuelled by robust home demand and expanding export shares. Industry sentiment remains high, with roughly 90% of surveyed executives feeling well-positioned for future growth. However, nearly 78% acknowledge that running an automotive supply business carries higher operational risks today than in previous years.

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Navigating ongoing market shifts requires balancing investments between traditional internal combustion engines and electric vehicles, local supply and export markets, and human talent and factory automation. Data from the report reveals that companies with established resilience capabilities gained a margin advantage of nearly 1.4 percentage points over non-resilient competitors during a decade of disruption, widening the performance gap during downturns.

A big barrier to long-term planning remains daily operational friction. Around one-third of industry leaders report spending most of their time handling immediate crises rather than guiding corporate strategy, a figure rising to over 40% among smaller component suppliers. The report identifies raw material cost spikes, labor shortages, and demand swings as the three most recurring operational challenges.

To transform resilience into a repeatable operational benefit, the report establishes a five-point roadmap focused on People and Talent, Supply Chain, Demand Mix, Value-Add Capability, and Technology Enablement. Experts emphasise moving away from isolated factory automation toward company-wide digital integration, advanced shop-floor skilling, and deeper cross-industry collaboration between OEMs, suppliers, and industry bodies.