New Delhi, July 30: India’s auto component industry is set for strong expansion over the coming years, with the sector expected to grow at around 10% annually through FY30, driven by rising demand, exports, and diversification into advanced manufacturing areas.
Pic Credit: Pexel
According to a report by Goldman Sachs, the industry’s revenue is projected to increase to $124.4 billion by FY30 from an estimated $85.6 billion in FY26. The report highlights that Indian manufacturers are moving beyond traditional automotive parts and entering high-value segments such as semiconductor equipment, aerospace, defence, electric vehicle components, and data-centre power solutions.
The transformation of the sector is being supported by global supply chain shifts, as international companies look to diversify their sourcing networks. India’s strong engineering capabilities, competitive costs, and skilled workforce are creating new opportunities for domestic manufacturers.
The report noted that companies are also improving profitability by expanding into precision engineering sectors, with earnings expected to grow faster than revenues. Growth in electric mobility, exports, advanced electronics, and industrial applications is likely to further strengthen the sector’s outlook.
The auto component industry is expected to benefit from multiple growth drivers, including increasing vehicle production, the shift of global manufacturing operations to India, and rising demand from sectors beyond automobiles.
With expanding opportunities across automotive, technology, defence, and aerospace industries, India’s auto component sector is emerging as a key contributor to the country’s manufacturing growth story.
