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

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code