Indian Auto Component industry clocks turnover of Rs. 6.73 lakh crore (USD 80.2 billion) in FY 24-25; grows at CAGR of 14% from FY20 to FY25 -

Exports grow 8% to USD 22.9 billion while imports grow 7.3% to USD 22.4 billion, Trade surplus of USD 453 million

New Delhi: Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry today announced the findings of its Industry Performance Review for the fiscal 2024-25. The turnover of the automotive component industry stood at Rs. 6.73 lakh crore (USD 80.2 billion), registering a year-on-year growth of 9.6%. The industry grew at a CAGR of 14% from FY20 to FY25, nearly doubling in size over the past five year period
Commenting on the performance of the auto component industry in India, Vinnie Mehta, Director General, ACMA said, “The Indian auto component industry continues to exhibit remarkable resilience and growth. With OEM sales, exports and the aftermoërket segments all growing positively, the industry clocked a turnover of Rs. 6.73 lakh crore (USD 80.2 billion) in FY25, reflecting a growth of 5.6% over the previous fiscal. Notably, the trade surplus was USD 453 million-a testament to India’s growing manufacturing competitiveness in the global market and localization initiates. The Aftermarket, estimated at Rs. 99,948 crore also witnessed a growth of 5 percent. Component supplies to OEMs in the domestic market grew by 10 percent to Rs.5.7 lakh crore”
Sharing insights on the performance of the auto component industry, Shradha Suri Marwah, President, ACMA & CMD, Subros said, “The Indian auto component sector continues to be a cornerstone of the country’s manufacturing prowess. FY25 was yet another milestone year where the industry’s growth was underpinned by strong domestic demand, rising exports, and increasing value addition. As India transitions towards new-age mobility, our industry is making the necessary strides in investments, technology and localisation to serve both domestic and global markets effectively
Elaborating on the mood of the industry and outlook for the near to mid-term future, Shradha mentioned, “The fiscal year witnessed broad-based growth and recovery across segments. While two-wheelers demonstrated robust growth, the passenger vehicle and commercial vehicle segments experienced steady, albeit moderate, momentum. On the exports front, ongoing geopolitical challenges have led to supply-chain challenges. Nevertheless, the industry continues to show remarkable resilience and remains in robust health. Investments in higher value-addition, technology upgradation, and localisation are being accelerated to align with evolving customer expectations and global supply chain dynamics However, the limited availability of rare-earth magnets remains a concern, underscoring the need for a national strategy on critical materials to secure the future of EV and mobility manufacturing in india.