NITI Aayog released the 5th edition of its Trade Watch report, highlighting a remarkable decade-long surge in India's automobile component exports. The report reveals that auto-component exports have doubled from USD 8.2 billion in 2015 to USD 16.9 billion in 2024, representing a compound annual growth rate (CAGR) of 7% over 2015-24. This growth underscores India's rising status as a global supplier of automotive parts.
India's automobile sector is the fourth largest in the world by volume, and the auto-component industry — supplying both domestic OEMs and international markets — has become a significant contributor to India's merchandise exports. The 5th Trade Watch edition analyses export performance across key product segments such as engine and transmission parts, electrical components, suspension and braking systems, and body and chassis parts.
The report sets an ambitious target of achieving USD 100 billion in auto exports by 2030, driven by India's strategic positioning in the global automotive supply chain, particularly as original equipment manufacturers (OEMs) diversify away from China. India's competitive advantages include lower labour costs, a large domestic market, growing engineering capability, and government initiatives such as the Production Linked Incentive (PLI) scheme for automotive components.
The PLI scheme for auto and auto components has incentivised investment in advanced automotive technology including electric vehicle (EV) components, advanced chemistry cells, and hydrogen fuel cell components. India is rapidly building capacity to supply EV components to global markets, positioning itself for the next phase of automotive growth. NITI Aayog's Trade Watch serves as a quarterly policy tool to track and guide India's export performance across strategic sectors.