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Exports

India's Automotive Component Exports Surge 8% to $22.9 Billion

Strategic Insights

— 2 min read

India's automotive component exports registered a significant 8% growth to $22.9 billion during the financial year ending March 2025, driven by robust demand from Asia, Africa, and North America, according to the Automotive Component Manufacturers Association of India (ACMA). The export growth was led by North America, which accounted for nearly one-third of total shipments, followed by Asia and Africa, with Europe experiencing a decline in exports due to regional challenges. Despite the decline, the overall export performance showcased India's expanding presence in global automotive supply chains.

Key Takeaways:

  • India's automotive component exports increased by 8% to $22.9 billion during FY 2024-25, driven by demand from Asia, Africa, and North America.
  • North America remained the largest destination for Indian auto component exports, accounting for nearly one-third of total shipments, with exports growing by 8.4% to $7.35 billion.
  • Asia emerged as another strong growth market, with exports jumping 15.1% to $5.92 billion, while shipments to Africa surged 16.7% to $1.16 billion.
  • Exports to Europe declined by 2.1% year-on-year to $6.75 billion due to regional challenges.
  • India achieved a trade surplus of $453 million in the auto component sector during FY 2024-25, an increase from the $300 million surplus recorded in the previous fiscal year.
  • The industry faces challenges including China's restrictions on rare earth magnets, and rare earth magnet availability, freight costs, and raw material price volatility have become key concerns.
  • The domestic automotive component industry demonstrated strong overall performance, with gross turnover increasing by 9.6% to Rs 6.73 lakh crore compared to the previous year.
  • The industry achieved a compound annual growth rate of 14% from FY 20 to FY 25, almost doubling in size over the five-year period.
  • The fiscal year witnessed broad-based growth and recovery across segments, with two-wheelers demonstrating robust growth, and passenger vehicle and commercial vehicle segments experiencing steady momentum.
  • The export performance underscores India's strengthening position as a global automotive component manufacturing hub.

Statistics:

  • India's automotive component exports increased by 8% to $22.9 billion during FY 2024-25.
  • Exports to North America grew by 8.4% to $7.35 billion, accounting for nearly one-third of total shipments.
  • Exports to Asia increased by 15.1% to $5.92 billion.
  • Exports to Africa surged 16.7% to $1.16 billion.
  • Exports to Europe declined by 2.1% year-on-year to $6.75 billion.
  • India achieved a trade surplus of $453 million in the auto component sector during FY 2024-25.
  • The industry's gross turnover increased by 9.6% to Rs 6.73 lakh crore compared to the previous year.
  • The industry achieved a compound annual growth rate of 14% from FY 20 to FY 25.

Sources:

  • "ACMA Releases Data on India's Automotive Component Exports" (ACMA Press Release)
  • "India's Automotive Component Exports Surge 8% to $22.9 Billion" (KNN, published by HT Digital Content Services)

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