The manufacturing base and cost advantages of India will position the country properly for market leadership in the coming years, Niti Aayog said in its latest report.
“The presence of India in the global automotive component market is relatively small. However, the growing manufacturing base of India and cost advantages properly position for the potential leader of the market in the coming years,” the report said.
According to the report, the exports of india car components have increased from USD 7.4 billion in financial year 2021 (FY21) to USD 12.8 billion in the fiscal year24.
Particularly worthy of mention is the fact that since fiscal year 21, India saw a 73 percent increase in exports, which reflects the post-pandemic recovery of India and increases the global demand of automatic component parts.
On the export front, India exports are strongly dominated by the drive transmission systems (DTS), the engine components and the electrical and electronic components, which together represent 53 percent of the total export participation of automotive components of India.
The main countries that are the main destinations of India for car exports are North America and Europe, which represent 34 percent.
And 27 percent of exports, with the United States that stand out as a key export market for India, since car exports or car exports for car are driven by their large automotive industry and the accessory market sector. Germany is another important market for automotive components for India, since 7 percent of the export participation of automotive components of India is Germany’s tasks.
The demand for high quality automotive parts, special engine components and transmission systems, is a will to the capabilities of India, combined with the fact that many components produced in India are used in vehicles that operate in Europlam in Europeating.
The proximity to Africa and Southeast Asia also provides India the opportunity to further increase its participation in exports through such emerging markets where the demand for automatic components is expected to increase as sales and car manufacture grow in the report, said Niti Aayog.
Similarly, in the Import Front, India has witnessed an 80 percent increase in its imports of automatic components, from USD 6.7 billion in fiscal year 21 to USD 12.1 billion in the fiscal year24, dominated by components of the motor and body/body in white).
China is the largest car supplier to India, which contributes about 23 percent of Indian imports, added the Niti Aayog report.