Indian Auto Component Industry To Grow To $14 Billion By 2028: Study

The Automotive Component Manufacturers Association of India (ACMA), along with Ernst & Young (EY), has released a study, called Global Automotive Research Report, that claims the Indian automotive components industry is expected to reach $14 billion (roughly ₹1,16,385 crore) revenue by 2028. In 2023, the components industry’s revenue touched $10 billion (roughly ₹83,133 crore).

The study includes components such as parts from the engine, suspension and braking, transmission and rubber components, cooling systems and filters. It does not include consumables like tyres, batteries, coolants and lubricants.

Shradha Suri Marwah, president of ACMA, said, “The Indian components suppliers need to focus on building partnerships with international buying groups to gain market access, invest in marketing and branding, increase digital presence, and build collaboration amongst the industry players to provide their joint offerings to tap the global market opportunities.”

ACMA and EY’s report mentions that the growth of the components industry has been fuelled by a steady increase in the passenger vehicle segment, which currently stands at 34 crore units and is expected to grow by around eight per cent in the next five years. By 2028, the report expects the passenger vehicle segment to grow to 7.2 crore units, while the two-wheeler segment is expected to grow to around 36.5 crore units. The commercial vehicle and tractor segments are expected to grow to 1.9 crore units by 2028. 

Furthermore, the report suggests that the sales in the used car market are expected to grow by around 17.5 per cent by the end of the financial year 2028, and will be helped by organised businesses and online platforms. 

The report also covers 39 countries but focuses on 10 key export markets. It says the Indian components industry has the potential to tap an export opportunity of over $35 billion (roughly ₹2,90,978 crore). Of these 10, markets like Indonesia, Latin America, Poland, Brazil, Colombia and Bangladesh have a matured aftermarket industry with many ageing vehicles. Furthermore, the report states that Africa and the UAE are fast-developing markets and have good growth potential.