India's auto component exports rise to $21.2 billion

India's auto component exports have experienced significant growth in the last few years. In the fiscal year 2024, exports reached $21.2 billion. This is a major improvement from a deficit of $2.5 billion in 2019. The country has moved into a surplus of $300 million. Several countries are key destinations for these exports. Major markets for Indian motorcycle parts include Germany, Bangladesh, the United States, and the United Kingdom. This trend shows India's increasing presence in the global market and a reduced reliance on imports. Experts believe India's auto component industry has the potential to reach $100 billion in exports. Global manufacturers are reassessing their supply chains, creating opportunities for India to become a leading supplier. A recent report suggests that India could add another $40-60 billion in exports by focusing on 11 key product areas, especially in the US and European markets. Additionally, there is potential to tap into the electric vehicle market. By localizing production, India could target an extra $15-20 billion in exports for components like battery management systems and telematics units. Global manufacturers account for a significant portion of India's auto component exports, making up 20-30%. In the German market, India is seen as a cost-effective alternative, offering components up to 15 percent cheaper than Eastern European suppliers. In the US, although Mexico currently dominates, Indian components are competitive due to lower costs compared to China.