Backed by 16.3% growth in OEM supplies and accelerated battery localization, India’s auto component sector doubles down on its trajectory toward $200 billion by 2030
The Automotive Component Manufacturers Association of India Mobility Foundation hosted its 66th Annual General Meeting on 2nd September in New Delhi. Under the theme “Beyond Resilience,” the event convened top policymakers, distinguished international guests, and thought leaders to map out strategies for elevating India’s position within global supply networks.
Targeting a landmark $200 billion valuation by 2030, India’s auto component sector is pivoting beyond baseline resilience toward aggressive global expansion. Demonstrating strong momentum, the Indian auto component sector recorded ₹7.6 lakh crore ($85.9 billion) in FY26 turnover—a 12.7% annual increase. After doubling its market size over five years, the industry is pivoting beyond resilience to establish a stronger global footprint.
As per the ACMA-BCG Report Beyond Resilience release during the session, around 90% of industry leaders across large, medium and small companies said they are “in the right place at the right time,” reflecting strong optimism about the sector’s growth outlook and future opportunities. India is strengthening its position as a globally competitive and reliable automotive sourcing hub, driven by record exports of $24 billion and 16.3% growth in supplies to OEMs. As global supply chains undergo a strategic shift, the domestic auto component industry is emerging as a preferred destination for manufacturing and sourcing, backed by innovation, quality, and scale.
Delivering the special address as Chief Guest, Shri H.D. Kumaraswamy, Hon’ble Minister for Heavy Industries & Steel, Government of India, outlined the government’s continuing support for the sector. “The theme ‘Beyond Resilience’ captures the ambition that must guide the Indian industry. The automotive and auto components industry is central to this journey. Over the past year, our government, under the able leadership of PM Narender Modi ji, has focused on translating policy intent into measurable outcomes. The Production Linked Incentive (PLI) scheme for automobiles and auto components is showing encouraging results. Our schemes are supporting investment, domestic value addition, advanced technology manufacturing and the transition to cleaner mobility”, said Kumaraswamy.
The session featured industry keynotes from Mr Shailesh Chandra, President, SIAM and Managing Director, Tata Motors Passenger Vehicles & Tata Passenger Electric Mobility; Mr R Mukundan, President, CII and Managing Director & CEO, Tata Chemicals; and Mr Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, who spoke to the opportunities and disruptions shaping the automotive value chain.
The industry’s next phase of growth, ACMA said, will be powered by Industry 5.0. It brings together AI, automation, robotics, IoT and human expertise to build more collaborative, agile, resilient and sustainable manufacturing ecosystems. Upskilling in AI, robotics, automation and digital manufacturing was flagged as essential to sustaining India’s position as a global manufacturing hub, alongside energy-efficient operations, circular manufacturing and responsible production, which are fast becoming prerequisites rather than options for globally competitive, future-ready automotive businesses. ACMA also reiterated the need for deeper collaboration between industry, government and technology partners to accelerate innovation, technology adoption and skill development across the sector.
Shri Piyush Goyal, Hon’ble Minister for Commerce & Industry, Government of India, closed proceedings as Chief Guest, reaffirming India’s growing role as a trusted global partner, with a vote of thanks by Mr Sriram Viji bringing the session to a close.
“ACMA and its members have been a pillar of support in all international FTAs and agreements done by the country. In this global turmoil, India is the one country that has stayed the course and has continued to be the fastest-growing among the large economies of the world. The 7.8% growth of India is a reality, and we know the strengths that young India brings to the table. All of these are signs that India can do much more. The story has just begun”, said Piyush Goyal.
In his welcome address, Mr. Vikrampati Singhania, President, ACMA and Managing Director, JK Fenner, set the tone for the day, reflecting on the industry’s journey and the case for building resilience that goes beyond mere survival.
“Over the past several years, resilience has defined our industry. We have navigated a pandemic, supply-chain disruptions, geopolitical conflicts, commodity volatility and profound changes in markets and mobility. Each time, the Indian automotive industry has adapted and emerged stronger. But resilience is about responding to change. Leadership is about shaping it. And I believe that is where India must now set its sights”, said Vikrampati Singhania, President, ACMA and Managing Director, JK Fenner.
The Annual Session witnessed participation of delegates, including senior government functionaries, OEMs, component manufacturers, global suppliers, diplomats, and key stakeholders – underscoring ACMA’s role as the voice of India’s auto component industry and its growing relevance in international dialogues.
The day concluded with a Valedictory Session on “FTAs – Exploring Newer Avenues for the Indian Auto Component Industry,” which opened with a welcome by Mr Vikrampati Singhania. Guests of Honour, Mr Harjinder Kang, His Majesty’s Trade Commissioner for South Asia and British Deputy High Commissioner for Western India, Government of UK, and Mr Sergio Gor, Ambassador of the United States of America to India, shared perspectives on the opportunities opening up for Indian manufacturers as new trade agreements take shape.
“CETA provides a strong platform to deepen India–UK automotive collaboration by expanding market access, enabling greater two-way investment and integrating Indian suppliers, particularly MSMEs, into global value chains. By simplifying trade processes and strengthening cooperation in advanced mobility, innovation and sustainable manufacturing, we can build more resilient supply chains and create long-term value for both countries”, said Harjinder Kang, His Majesty’s Trade Commissioner for South Asia and British Deputy High Commissioner for Western India, Government of UK.
