India’s automotive components industry is expected to cross $80.1 billion in revenue in FY25. The industry is growing at a CAGR of 8 per cent since FY20.

According to the Rubix Industry Insights - Automotive components report, the electric vehicle (EV) components contribution doubled to 6 per cent of total production in FY24. 

“India’s EV market saw sales grow over 76 per cent CAGR from FY20 to FY24, with projections to maintain this momentum. Between FY20 and FY24, exports saw a 10 per cent CAGR, reaching $21.3 billion, with the US being the largest market. Simultaneously, a trade surplus of $300 million in FY24 underscores India’s strategic shift in global automotive supply chains,” the report said.

Strong 2W growth

Driven by strong growth in the two-wheeler segment, the Automotive Component Manufacturers Association has forecast a growth rate of 7-10 per cent for the industry during FY25.  

“India is rapidly becoming a vital player in the global automotive supply chain, thanks to robust growth in vehicle production, strong government support and the unwavering commitment of component manufacturers — including a vibrant network of SMEs — to quality and innovation. We believe this momentum will position India as an indispensable sourcing hub for global OEMs, especially as the industry seeks reliable, diversified alternatives. Therefore, supporting SMEs in their modernisation and growth will be crucial to sustaining India’s competitive edge on the global stage. By understanding the key trends, challenges and opportunities in this sector, businesses can make informed decisions and capitalise on the potential of this dynamic industry,” said Mohan Ramaswamy, Co-Founder and Chief Executive Officer, Rubix Data Sciences. 

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