TL;DR
India's automotive component industry is set to exceed $80.1 billion in revenue in FY2025, driven by 8% CAGR since FY2020 and a significant boost from EV component production and exports.
The Indian automotive components industry is projected to achieve a significant revenue milestone, exceeding $80.1 billion in FY2025. This represents a robust 8% Compound Annual Growth Rate (CAGR) since FY2020, according to the latest report from Rubix Data Sciences, 'Rubix Industry Insights – Automotive Components'.
The report highlights India's expanding role in the global automotive supply chain, with exports reaching approximately $21.2 billion, growing at a 10% CAGR since 2020. A standout trend is the doubling of the electric vehicle (EV) components industry's contribution, now accounting for 6% of total production in FY2024, driven by the government's 'EV 30@30' initiative and a focus on localization.
Key growth areas identified include battery technology and powertrain systems, which constitute 45% of EV manufacturing costs. The sustained momentum in the EV market, coupled with strategic investments in domestic manufacturing and a trade surplus of $300 million in FY2024, underscores India's strategic shift in global automotive supply chains and its commitment to self-reliance.
