India’s Auto Parts Industry Gears Up for $145 Billion Milestone by 2030
India’s auto component industry is gearing up for a remarkable growth trajectory, with projections estimating the market to hit $145 billion by 2030, a significant jump from the current $56 billion valuation. This bullish outlook is detailed in NITI Aayog’s recent report titled “Automotive Industry: Powering India’s Participation in Global Value Chains.”
A key highlight of the report is the expected surge in exports, which are forecast to triple from $20 billion to $60 billion within the same period. This dramatic increase underscores India’s rising potential as a global manufacturing and supply hub for automotive components.
The report identifies targeted strategies aimed at improving India’s global competitiveness. It classifies automotive components into four segments based on complexity and technological advancement:
This segmentation allows for focused policy and industrial interventions to drive innovation, scale manufacturing, and foster investment in high-growth areas like electric mobility, autonomous technology, and connected vehicles.
Opportunities Amidst Challenges
While the industry faces challenges such as raw material dependency, skill gaps, and technological barriers, the report emphasizes that strategic interventions—such as improved infrastructure, favorable trade policies, and R&D incentives—can turn these hurdles into stepping stones.
India is also expected to benefit from the global trend of supply chain diversification, as manufacturers seek alternatives to traditional production centers. Leveraging its cost-competitive manufacturing ecosystem and a large talent pool, India is well-positioned to capitalize on this shift.
Conclusion
The road to 2030 presents a transformative journey for India’s auto component sector. With the right policy push and industry collaboration, the country is on track to emerge not just as a global supplier, but as a strategic partner in the future of mobility.
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