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ACMA Unveils Strategy to Boost Auto Component E
ECONOMY & POLICY

ACMA Unveils Strategy to Boost Auto Component E

India's auto component sector has set an ambitious goal of reaching $100 billion in exports over the next seven to eight years, a significant rise from the $21.2 billion recorded in the fiscal year 2024. The Automotive Component Manufacturers Association of India (ACMA) has outlined a strategic roadmap to position the country as a global hub for both traditional and advanced automotive technologies.  

A joint report by Boston Consulting Group (BCG) and ACMA highlights two major growth drivers for achieving this target. The plan involves expanding exports of conventional vehicle components, such as internal combustion engine and carry-over parts, by two to three times, while also strengthening India's presence in the electrification and electronic component segments.  

The report identifies 11 key product families, including engines, gears, gearbox parts, rubber brakes, axles, suspension systems, wiring harnesses, and motors, as focal areas for export growth. The primary target markets for this expansion are the United States and Europe. Additionally, the growing demand for electric vehicles (EVs) and electronic components presents another high-potential segment, with an estimated $15-20 billion opportunity through the localisation of battery management systems, telematics units, instrument clusters, and anti-lock braking systems.  

India's auto component industry has already demonstrated significant progress, reversing a $2.5-billion trade deficit in fiscal year 2019 to achieve a $300-million surplus by 2024. The global auto component trade, currently valued at $1.2 trillion, is largely driven by demand from the United States and Europe.  

Shifting geopolitical factors are prompting global original equipment manufacturers (OEMs) to reconsider their supply chains, creating an opportunity for India to emerge as a preferred manufacturing destination. Strategic partnerships with international OEMs could further integrate domestic manufacturers into global supply networks, strengthening India’s position in the international market.  

With a strong focus on technological advancements and export growth, India's auto component sector is on track to become a key player in the global automotive industry.  

News source: KNN

India's auto component sector has set an ambitious goal of reaching $100 billion in exports over the next seven to eight years, a significant rise from the $21.2 billion recorded in the fiscal year 2024. The Automotive Component Manufacturers Association of India (ACMA) has outlined a strategic roadmap to position the country as a global hub for both traditional and advanced automotive technologies.  A joint report by Boston Consulting Group (BCG) and ACMA highlights two major growth drivers for achieving this target. The plan involves expanding exports of conventional vehicle components, such as internal combustion engine and carry-over parts, by two to three times, while also strengthening India's presence in the electrification and electronic component segments.  The report identifies 11 key product families, including engines, gears, gearbox parts, rubber brakes, axles, suspension systems, wiring harnesses, and motors, as focal areas for export growth. The primary target markets for this expansion are the United States and Europe. Additionally, the growing demand for electric vehicles (EVs) and electronic components presents another high-potential segment, with an estimated $15-20 billion opportunity through the localisation of battery management systems, telematics units, instrument clusters, and anti-lock braking systems.  India's auto component industry has already demonstrated significant progress, reversing a $2.5-billion trade deficit in fiscal year 2019 to achieve a $300-million surplus by 2024. The global auto component trade, currently valued at $1.2 trillion, is largely driven by demand from the United States and Europe.  Shifting geopolitical factors are prompting global original equipment manufacturers (OEMs) to reconsider their supply chains, creating an opportunity for India to emerge as a preferred manufacturing destination. Strategic partnerships with international OEMs could further integrate domestic manufacturers into global supply networks, strengthening India’s position in the international market.  With a strong focus on technological advancements and export growth, India's auto component sector is on track to become a key player in the global automotive industry.  News source: KNN

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