India’s automotive components market expected to grow 5X by 2026
Global auto component market is pegged to be around $1.75 trillion. However, Indian auto component industry revenue stands at just $40 billion, which is just 2.3 percent of the total Indian GDP and contributes $11 billion of exports.
“It is expected the market size and exports will grow by fives times according to Automotive Mission Plan (AMP) 2026. This would require an investment of $25-30 billion. So we are not playing for today’s market, we are playing for 2026” said Arvind Balaji, President, ACMA.
Top auto component manufacturers have invested $50 billion in the R&D and 50 percent of innovation in the automotive industry is done jointly with auto component players.
According to industry leaders, the growth opportunities are tremendous and that is the reason everybody is looking at this market. However, any opportunity comes with challenges. The first and foremost challenge is to deliver a better quality and technology products to OEMs.
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