The government is pushing the auto components industry to target a five-fold increase in exports to USD 100 billion by the end of the decade, to make India a global hub of the automotive industry.
“Whilst our industry is on a growth path, the government would like us to be much more aggressive on the export front and localise more. The government wishes the components sector to have a growth of 5X in exports and touch USD 100 billion by 2030 from the current USD 20 billion, thus capturing a 5% share of the global auto component exports,” ACMA President Shradha Suri Marwah said while speaking at the EV Summit today.
As per the data from ACMA, component exports from India during 2022-2023 stood at USD 20.1 billion, which represented a growth of 5.2 percent on a year-on-year basis. North America accounted for 32 percent of the exports, followed by Europe and Asia.
India a significant market for domestic sales and exports
Several global component makers now see India as a significant market for domestic sales and exports as they are looking beyond China for a reliable and best cost base. The government has been trying to showcase India as the global hub for automobiles, which was reflected in the recently held Bharat Mobility Global Expo where they bought the entire mobility ecosystem on a single platform, in one exhibition.
The government has made it clear how important the mobility sector is for the economy’s future growth. At the Bharat Mobility Expo, Prime Minister Narendra Modi said the mobility sector will have a significant role in India’s road to a developed country. Commerce and Industries Minister Piyush Goyal also recently urged the Indian auto industry to target at least a 50 percent share of exports in the vehicles produced here.
Marwah said a five-fold growth could not be possible without significant exports of electronics and electric vehicle components. “I am given to understand that the Ministry of Heavy Industries will soon initiate work on the Automotive Mission Plan 2030. We are eager to participate and chart out the road map for the future,” she said.
Meanwhile, she noted that the industry needs to invest in capacity, quality, capability and digitisation to hit the USD 100 billion export figure. “In the last five years, the auto component sector has invested close to USD 3.5-4 billion in manufacturing and allied services. Looking forward, in the next five years, the number is going to go to USD 6-7 billion and a large part of that investment is going to be for new technologies,” she added.