Admin 
India has become the fastest-growing economy in the world in recent years. This fast growth, coupled with rising incomes, a boost in infrastructure spending and increased manufacturing incentives, has accelerated the Auto Components or Automobile industry.
Significant demand for automobiles also led to the emergence of more original equipment and auto components manufacturers. As a result, India developed expertise in automobiles and auto components, which helped boost international demand for Indian automobiles and auto components. Hence, the Indian automobile industry has a considerable impact on the auto component industry.
India has a very strong position in the international market. It is the largest manufacturer of tractors, the second-largest manufacturer of buses and the third-largest of heavy trucks in the world. Indian automotive industry (including component manufacturing) is expected to reach between Rs. 16.16-18.18 trillion by 2026. Indian automobile sector recorded an inflow of huge investments from domestic and foreign manufacturers.
As per Automobile Component Manufacturers Association (ACMA), automobile component export from India is expected to reach US$ 30 billion by 2026. The Indian auto component industry aims to achieve US$ 200 billion in revenue by 2026.
Government Initiatives
- 100% FDI is allowed under the automatic route for auto components sector.
- Production Linked Incentive (PLI) schemes on automobile and auto components are expected to bring a capex of Rs. 74,850 crore (US$ 9.58 billion) in the next five years.
- The Bharat New Car Assessment Program (BNCAP) will not only strengthen the value chain of the auto component sector, but it will also drive the manufacturing of cutting-edge components, encourage innovation, and foster global excellence.
Segmentation by Product Types
- Engine Components
- Body / Chassis / BiW
- Suspension & Braking
- Drive Transmission & Steering
- Cooling Sy stem
- Electricals & Electronics
- Rubber Components
- Interiors (non-electronic)
Export of Various Auto Components From India
Articles of Iron or Steel:
| 73269099 | All Other Articles of Iron /Steel Nes Forged or stamped but not further worked |
| 73181500 | Threaded articles: Other screws and bolts, whether or not with their nuts orwashers |
| 73072100 | Other, of stainless steel: Flanges |
Machinery and mechanical appliances, electrical equipment, sound recorders and reproducers:
| 84834000 | Gears and gearing, other than toothed wheels, chain sprockets and other transmission elements presented separately; ball or roller screws; gear boxes and other speed changers, including torque converters |
| 84099990 | Other parts of diesel engine: Other |
| 84082020 | Engines of cylinder capacity exceeding 250 cc |
Also Read This: A Detailed Report On Engineering Goods Import-Export
Vehicles other than railway or tramway rolling – stock, and parts and accessories:
| 87141090 | Other |
| 87089900 | Other: Motor vehicle parts (Reservoir for Hydraulic Power Steering Systems Steering Gear Systems and Parts) |
| 87083000 | Brakes and servo-brakes; parts thereof |
Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories:
| 90328990 | Other |
| 90319000 | Other optical instruments and appliances: Parts and accessories (Measuring& Checking Instruments – Sensors) |
| 90292020 | Speedometers, non-electrical |
Top HS Code(exports):
| 87089900 | Other: motor vehicle parts (reservoir for hydraulic power steering systems & steering gear systems and parts) |
| 73269099 | All Other Articles of Iron/Steel Nes Forged or stamped but not further worked. |
| 84834000 | Gears and gearing, other than toothed wheels, chain sprockets and other transmission elements presented separately; ball or roller screws; gear boxes and other speed changers, including torque converters |
| 87141090 | Other |
| 87083000 | Brakes and servo brakes; parts thereof |
| 87085000 | Drive-axles with differential, whether or not provided with other transmission components, non-driving axles; parts thereof |
| 85030090 | Other |
Top Export Destination
- United States
- South Korea
- Mexico
- Germany
- United Arab Emirates
- Canada
- Brazil
- Sweden
- Turkey
- Nepal
Findings
- A cost-effective manufacturing base keeps costs lower by 10-25% relative to operations in Europe and Latin America.
- India is the 2nd largest steel producer globally, thus has a cost advantage.
- India is emerging as a global auto component sourcing hub due to its proximity to key automotive markets such as ASEAN, Europe, Japan and Korea.
