Auto components industry eyes $200 bn turnover by FY30: Report

The Indian auto components industry has set its sights on reaching $200 billion in turnover by FY30, backed by demand at home and abroad, according to a report by BCG and ACMA.

The industry has grown faster than ever, rising at 17% CAGR to reach $86 billion in turnover in FY26, even as it absorbed multiple shocks, from the 2019 slowdown and COVID to commodity spikes, and more recently, rare-earth curbs, said the report titled 'Beyond Resilience: Built to Endure, Designed to Win'.

The joint report by Boston Consulting Group (BCG) and the Automotive Component Manufacturers Association of India (ACMA), further said there is optimism for the future but grounded in the reality of what it takes to succeed with around 90% of industry leaders surveyed believing they are "in the right place at the right time" even as nearly 78% say business is riskier than it was a few years ago.

"Backed by strong domestic demand and a growing share of global exports, the industry has set its sights on reaching roughly $200 billion in turnover by FY30," the report said.

ACMA President Vikrampati Singhania said India's auto components industry has demonstrated remarkable resilience through successive disruptions and has earned the confidence to be ambitious.

“Realising our aspiration of becoming a $200 billion industry will require deeper localisation, greater value addition, stronger engineering capabilities and sustained export competitiveness. Resilience must now become a strategic capability that enables us to anticipate change and seize new opportunities," he noted.

Stating that resilience is increasingly becoming an operating advantage rather than simply a defensive capability, BCG Managing Director and Senior Partner, Vikram Janakiraman said, "Companies that invest ahead of disruption, build flexibility and strengthen capabilities can put themselves in a better position to navigate volatility and sustain performance."

The report noted that the last decade has seen a period of structural demand growth in India, with the country emerging as the 3rd largest auto market in the world.

The auto components industry has been the backbone of growth by achieving around 70% localisation and a net trade surplus.

It has reached the milestone while tackling repeated, multi-faceted disruptions across demand and inputs, the report said.