Despite global disruptions including the challenges in the limited availability of rare-earth materials, India remains in a “sweet spot, offering a steady growth outlook built on resilience, innovation, and rising domestic capability,” Shradha Suri Marwah, President, ACMA & CMD, Subros, has said.
Announcing the findings of its industry performance review for the fiscal 2024-25, Marwah said the global geopolitical landscape remains highly volatile, with unpredictable conflicts and shifting trade policies disrupting sentiment and stability. Unstable tariffs, such as the recent moves by the United States, continue to fuel uncertainty across the automotive ecosystem. Compounding this is the impact on global supply chains—freight and logistics disruptions due to closed corridors are leading to longer lead times, increased inventory holding, and tighter working capital.
Amid these global headwinds, India’s automotive component industry continues to chart a positive trajectory, she mentioned. The sector recorded a healthy 9.6% growth, with strong performance in two-wheelers and encouraging signs for the upcoming festive season. A good monsoon is expected to further support rural demand and consumer sentiment.
Importantly, the industry’s growing focus on localisation is translating into greater self-reliance. The shift from merely assembling to fully designing and manufacturing in India marks a pivotal evolution in capabilities. Investment in technology, though still below global averages, is steadily increasing, she mentioned.
Equally critical is the ongoing reskilling and upskilling of the workforce to match the transformation underway across alternative fuels, digitisation, and new mobility paradigms. This effort is now spanning the entire value chain—not just tier-one suppliers—highlighting the sector’s readiness for a dynamic future.
“The industry is accelerating investments in localisation, technology, and value-addition to remain competitive globally,” she said. However, she cautioned that the limited availability of rare-earth materials—especially magnets crucial to EVs—poses a long-term challenge. “India must formulate a national strategy for critical materials to future-proof its EV and mobility ambitions,” she added.
The Indian auto component industry posted a robust performance in FY2024-25, registering a turnover of INR 6.73 lakh crore ($ 80.2 billion). The sector has grown at a CAGR of 14% from FY20 to FY25, nearly doubling in value over the past five years.
Vinnie Mehta, Director General, ACMA, highlighted the resilience of the sector, saying, “With growth in OEM sales, exports, and the aftermarket, the industry recorded a trade surplus of $ 453 million—a strong indication of India’s growing manufacturing strength and localisation efforts.” Component sales to domestic OEMs rose 10% to INR 5.7 lakh crore, reflecting both higher vehicle production and a shift towards higher value-added and performance-oriented vehicles.
Exports grew 8% to $ 22.9 billion (INR 1.92 lakh crore), led by strong demand from North America and Asia. North America, which accounts for 32% of exports, registered 8.4% growth, while Asia saw 15.1% growth. Europe, comprising 29.5% of exports, recorded a marginal 2.1% decline, attributed to ongoing geopolitical and supply chain challenges. Top export items included drivetrain components, engine parts, and suspension systems. Imports stood at $ 22.4 billion, with Asia contributing two-thirds of the total, resulting in a trade surplus of $ 453 million—an improvement from $ 300 million the previous year.
The domestic aftermarket sector continued its steady growth, increasing by 6% to INR 99,948 crore ($ 11.8 billion). The rise was fuelled by a growing used vehicle base, greater formalisation of the repair and spares ecosystem, and increased rural demand, supported by the spread of e-commerce services.
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