India's Auto Component Industry Sees Record Trade Surplus, Exports Surge

Strategic Insights -

India's auto component industry has reported a record trade surplus of $453 million in FY25, with exports surpassing imports for the second consecutive year. According to the Automotive Component Manufacturers Association of India (ACMA), auto parts exports grew by 8% to reach $23 billion in FY25, while imports increased by 7% to $22.4 billion. The industry's exports have nearly doubled from $13 billion in FY21, with the CIS and Baltics region experiencing the highest growth at 35.4%.

Key Takeaways:

  • The auto component industry's trade surplus increased to $453 million in FY25, a significant jump from $300 million in FY24.
  • Auto parts exports grew by 8% to reach $23 billion in FY25, while imports increased by 7% to $22.4 billion.
  • The CIS and Baltics region experienced the highest growth in exports at 35.4%, followed by Latin America at 21%, Africa at 17%, and Asia at 15%.
  • North America remained the biggest export market for India, followed by Europe and Asia.
  • Engine components, drive transmission, and steering parts account for more than half of India's exports.
  • The US is India's top export market with a 27% share of the total pie, while China is the top import market with a 32% share.

Statistics:

  • FY25 trade surplus: $453 million
  • FY24 trade surplus: $300 million
  • FY25 auto parts exports: $23 billion (up 8% from FY24)
  • FY25 auto parts imports: $22.4 billion (up 7% from FY24)
  • FY21 auto parts exports: $13 billion (nearly doubled in FY25)
  • CIS and Baltics region growth rate: 35.4%
  • Latin America growth rate: nearly 21%
  • Africa growth rate: 17%
  • Asia growth rate: 15%
  • North America export market: $7.35 billion
  • Europe export market: $6.75 billion
  • Asia export market: $6 billion
  • Africa, Latin America, and CIS/Baltics export market: $3 billion
  • US share of total exports: 27%
  • China share of total imports: 32%

Sources:

  • Automotive Component Manufacturers Association of India (ACMA)
  • Times Content (timescontent.com)