Automobile Components

India has emerged as a global hub for the R&D and manufacturing of next-gen automobile components.

Last updated: December 2, 2022

The industry is expected to reach US$ 200 billion by FY26

US$ 15 bn

Current valuation of exports

7.1%

Contribution to GDP

US$ 57 billion

Market size (FY21)

5 mn

Direct & indirect employment

100%

foreign investment allowed under the automatic route.

US$100bn

of auto-components exports targeted by industry by 2026.

40%

of global engineering and R&D activities are located in India.

2.3%

of India's GDP currently and is set to become the 3rd largest globally by 2025.

Electric

growing capacity in electric mobility offers opportunities.

FAME II

The main objective of the scheme is to encourage faster adoption of electric and hybrid vehicle by way of offering upfront incentive on purchase of electric vehicles and also by way of establishing a necessary charging Infrastructure for electric vehicles. The scheme will help in addressing the issue of environmental pollution and fuel security.
National Auto Policy (Draft)

To make India one of the top three automobile industries in the world
National Electric Mobility Mission Plan 2020

This is a culmination of a comprehensive collaborative planning for promotion of hybrid and electric mobility in India.
Automotive Mission Plan 2016-26

AMP 2026 seeks to communicate the Government and industry's intent and objectives pertaining to the Indian automotive industry, to multiple stakeholders in India and overseas.
The Motor Vehicles (Amendment) Act, 2019

The futuristic policy aims to resolve several issues surrounding road transportation in India. It comes amid rapid expansion of roadways network around the nation.

National Automotive Testing and R&D Infrastructure Project

The Union Cabinet has approved the revised cost estimate for Rs.37.3bn for the National Automotive Testing and R&D Infrastructure Project (NATRIP).

Guidelines & Standards for Charging Infrastructure for Electric Vehicle

Under the new guidelines for the electric vehicle charging infrastructure, there must be at least one charging station in a grid of 3 x 3 km in all megacities and one charging station every 25 km on both sides of highways.
Phased Manufacturing Programme of EVs

The following Phased Manufacturing Programme (PMP) is notified with the objective of development of domestic manufacturing of electric vehicles, its assemblies/sub-assemblies, and parts/sub-parts, thereby increasing the domestic value addition and creating employment opportunities.
Amendment in the revised Guidelines and Standards for Charging Infrastructure for Electric Vehicles

The amendment proposes that the amount payable for the charging of Electric Vehicles will be subject to the Tariff policy as part of Section 3 of the Electricity Act 2003. The tariff will be combination of the average cost of supply and fifteen percent unless indicated otherwise.

PLIs announced as part of Aatmanirbhar Bharat 3.0

Production Linked Incentives for ten sectors have been announced as part of the Aatmanirbhar Bharat 3,0 stimulus package.

Automotive Component Manufacturers Association

080 2570 2855

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An apex body representing the interests of the industry.

Automotive Research Association of India

+91-020-30231111

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Research institute of the automotive industry with the Ministry of Heavy Industries & Public Enterprises.

Society of Indian Automobile Manufacturers

91 – 11 – 24647810 -12,

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Industry body representing the interests of automobile manufacturers.

Department of Heavy Industry

Investment Opportunities

  • India is the only major automobile producing nation that is witnessing steady growth in both domestic sales and exports.
  • R&D in battery technology, power electronics, motors, systems integration, battery management system and testing infrastructure.
  • PPP based industry investments in research and development of commercially viable technologies through a Hybrid Annuity Model.
Useful Links:

Key Investors

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive and capital establishments

Bosch has 18 manufacturing sites and 7 development and application centres in India

AISIN mainly exports for Toyota in Europe and Suzuki in Thailand from its manufacturing facilities in India

Delphi has 4 manufacturing facilities in India and supplies to Maruti Suzuki India Limited, General Motors India, Volvo etc.

DENSO has a manufacturing facility, 7 R&D centres and employs 4,000 employees in six group companies

Magneti Marelli manufactures in India and supplies to all the leading car manufacturers

ENABLING ENVIRONMENT

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive, and capital establishments

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News

PE investment for EVs to cross US$ 1 bn this year
October 31, 2022

Backed by the rise of new policy initiatives, increasing fossil …

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Auto component sector to see 9-11% revenue from EV parts by 2027: Crisil
July 27, 2022

India’s auto component industry is expected to witness 9-11% of …

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Auto sector to create 1 cr jobs in 5-6 years, exports jump 26% in Apr-June
July 20, 2022

The automobile sector in India will create at least 1 …

Read More
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Events

Dec 05,2022

Role of Youth in Making India Free from Smuggling & Counterfeiting
Dec 05,2022

FICCI-CMSME: Annual MSME Summit 2022- Pushing Sustainable MSME Growth in India and MSME Ecosystem Awards
Dec 06,2022

Round table discussion on Elevating High Volume Hiring & Screening Strategies
Dec 06,2022

Awareness Programme on Preventive Strategies to Combat Counterfeiting and Smuggling
View More