Automobile Components

Indian Auto Component Industry clocks highest-ever turnover of US$ 69.7 billion, grows 33% in FY 2022-23.

Last updated: March 8, 2023

Auto Components industry turnover to reach US$ 200 bn by 2026

US$ 300 billion

Value of the Auto Components industry

2.3%

Contribution to GDP

US$ 80.8 Billion

Size of Indian Original Equipments Manufacturers ( OEMs)

5 mn

Direct & indirect employment

100%

foreign investment allowed under the automatic route.

US$ 300 billion

of auto-components exports targeted by industry by 2026.

40%

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

US$ 35.40 billion

FDI inflow into Indian automotive industry during the period Apr 2000-Sept 2023

Electric

growing capacity in electric mobility offers opportunities.

PLI Scheme for 10 key sectors to enhance manufacturing capabilities

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in the following 10 key sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

National Programme on Advanced Battery Cell Storage

The Government approved the Production Linked Incentive (PLI) Scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage' for achieving manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) of ACC for enhancing India's Manufacturing Capabilities with a budgetary outlay of ₹ 18,100 crore.
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 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

Visit Website

An apex body representing the interests of the industry.

Automotive Research Association of India

+91-020-30231111

Visit Website

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

Society of Indian Automobile Manufacturers

91 – 11 – 24647810 -12,

Visit Website

Industry body representing the interests of automobile manufacturers.

Department of Heavy Industry

Investment Opportunities

  • Auto Components industry in India is expected to grow to $200 Bn by 2026
  • 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

India’s current account balance records surplus in Q4 2023-24 Read More
India will be a world leader in AI: PM Modi Read More
India to launch custom AI model with INR 2,000 cr. investment Read More
Govt to launch first part of the National Hydrogen Policy Read More
IT company hiring in India up by 8.2% Read More
Indian SaaS market grows 170% in 2021: Bain & Co Read More

News

Economic Survey 2024: Indian economy shows resilience amidst global challenges
July 22, 2024

The Indian economy has remained robust and stable, demonstrating resilience …

Read More

FM Sitharaman gears up for historic budget presentation
July 17, 2024

As the Budget presentation date inches closer, the final stage …

Read More

UK-India free trade agreement set to conclude swiftly: Piyush Goyal
July 11, 2024

Soon after Labour Party’s Keir Starmer took charge of the …

Read More
View All

Events

Jul 30,2024

CII National Startup Conference and Award Ceremony 2024
Jul 31,2024

FICCI-Bharat Hackathon for Startups
Aug 06,2024

16th CII Global MedTech Summit
Aug 08,2024

CII Water-Tech 2024
View More