TL;DR
An ACMA–McKinsey study projects India's auto component industry to hit $200 billion by 2030, driven by domestic demand, exports, and EV/connected technologies.
A recent ACMA–McKinsey study projects India's auto component sector to grow significantly, reaching an impressive $200 billion (approximately ₹17,65,615 crore) by 2030. This growth is anticipated to be fueled by robust domestic demand, expanding export opportunities, and the emergence of new avenues in electric vehicle (EV) and connected technologies. The Automotive Component Manufacturers Association of India (ACMA) highlighted these findings at its 65th Annual Session.
The study, presented during ACMA's session focused on building a resilient automotive supply chain in India, emphasized the industry's pivotal role in the nation's economic landscape. Policy support, including successful Production-Linked Incentive (PLI) schemes that have attracted substantial investments and created numerous jobs, is also contributing to this optimistic outlook. The PM-eDRIVE programme, designed to accelerate India's transition to electric mobility across various vehicle segments, further underpins the sector's future growth.
Industry leaders and policymakers at the event reiterated the long-term vision of establishing India as a global hub for smart, sustainable, and affordable mobility by 2030. Discussions also touched upon ongoing Free Trade Agreement (FTA) talks with the European Union, which are expected to unlock new growth avenues for Indian auto component manufacturers. The reduction of GST on auto parts to 18 percent is another supportive measure aimed at boosting the sector.
