Smart Factories Key to India's Auto Component Export Ambition: ACMA-BCG Study

The Automotive Component Manufacturers Association of India (ACMA) and Boston Consulting Group (BCG) on Wednesday released a joint study named "Bolts, Bytes and Bots: Reimagining Next-Gen Auto Component Manufacturing in India", which details how digitalisation, automation and advanced analytics are reshaping India's auto component manufacturing landscape. As global Original Equipment Manufacturer (OEM) expectations rise on quality, traceability, speed and sustainability, the study added that Smart Factory adoption is no longer optional but key to competitiveness and global integration.

Also read: India to Start Local Permanent Magnet Production In 2 Years, Cutting China Import Reliance

Having grown at around 14 per cent Compound Annual Growth Rate (CAGR) over the last five years to reach nearly $80 billion, the Indian auto component sector is targeting exports worth $100 billion by FY30.

“The findings clearly indicate that Smart Factory initiatives are moving from experimentation to execution across the sector. The next phase must focus on scaling these efforts across plants and the supplier ecosystem. This will require shared platforms, deeper partnerships and coordinated ecosystem development, where industry bodies like ACMA can play a catalytic role," Vikrampati Singhania, President, ACMA, told reporters in New Delhi.

According to an industry survey of auto component manufacturers across segments and sizes, complemented by in-depth discussions with industry leaders and shop-floor teams, the study further highlights a clear shift in mindset -- from isolated digital pilots to enterprise-wide transformation.

“What stands out is the structural shift in how digitalisation is being viewed no longer as a discretionary investment, but as a long-term lever for competitiveness. As the industry balances export growth, coexistence of multiple-powertrains and workforce challenges, smart manufacturing offers a practical pathway to improve reliability, productivity and quality using existing assets," said Vinnie Mehta, Director General, ACMA.

The study further noted that companies adopting digital and automation solutions are already seeing tangible improvements in operational visibility, quality outcomes, asset utilisation and responsiveness to customer requirements.

“India’s auto component sector has led the charge on localisation and import substitution over many years, building deep manufacturing capability and scale. Today, as growth accelerates across domestic and export markets, the challenge is managing both volume and complexity. It is promising to see that the sector has made a start by adopting Smart Factory initiatives, with Indian companies already realising significant OEE improvements, quality gains, and better throughput from existing assets," said Vikram Janakiraman, Managing Director and Senior Partner, BCG.