ACMA: Auto Components Sector Grows 14 Percent CAGR to Reach US$ 80.2 Billion in FY25

New Delhi, India – Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s Auto Component manufacturing industry, announced the findings of its Industry Performance Review for the fiscal year 2024-25. The turnover of the automotive component industry stood at INR 6.73 lakh crore (US$ 80.2 billion), registering a year-on-year growth of 9.6 percent. The industry grew at a CAGR of 14 percent from FY20 to FY25, nearly doubling in size over the past five-year period.

Commenting on the performance of the auto component industry in India, Vinnie Mehta, Director General, ACMA, said, “The Indian auto component industry continues to exhibit remarkable resilience and growth. With OEM sales, exports, and the aftermarket segments all growing positively, the industry clocked a turnover of INR 6.73 lakh crore (US$ 80.2 billion) in FY25, reflecting a growth of 9.6 percent over the previous fiscal year. Notably, the trade surplus was US$ 453 million—a testament to India’s growing manufacturing competitiveness in the global market and localization initiatives. The Aftermarket, estimated at INR 99,948 crore, also witnessed a growth of 6 percent. Component supplies to OEMs in the domestic market grew by 10 percent to INR 5.7 lakh crore.”

Sharing insights on the performance of the auto component industry, Shradha Suri Marwah, President, ACMA & CMD, Subros, stated, “The Indian auto component sector continues to be a cornerstone of the country’s manufacturing prowess. FY25 was yet another milestone year where the industry’s growth was underpinned by strong domestic demand, rising exports, and increasing value addition. As India transitions towards new-age mobility, our industry is making the necessary strides in investments, technology, and localization to serve both domestic and global markets effectively.”

Elaborating on the mood of the industry and outlook for the near- to mid-term future, Marwah mentioned, “The fiscal year witnessed broad-based growth and recovery across segments. While two-wheelers demonstrated robust growth, the passenger vehicle and commercial vehicle segments experienced steady, albeit moderate, momentum. On the exports front, ongoing geopolitical challenges have led to supply-chain challenges. Nevertheless, the industry continues to show remarkable resilience and remains in robust health. Investments in higher value-addition, technology upgradation, and localization are being accelerated to align with evolving customer expectations and global supply chain dynamics. However, the limited availability of rare-earth magnets remains a concern, underscoring the need for a national strategy on critical materials to secure the future of EV and mobility manufacturing in India.”

Key findings of the ACMA Industry Performance Review for H1 2024-25:

Sales to OEMs: Auto component supplies to OEMs stood at INR 5.70 lakh crore, registering a growth of 10 percent year-on-year, driven by an 8 percent increase in overall vehicle production in the country. Consumption of increased value-added components and a shift in market preference towards larger and more powerful vehicles continued to contribute to the turnover of the auto-components sector.
Exports: Exports of auto components grew by 8 percent to US$ 22.9 billion (INR 192,346 crore) from US$ 21.2 billion (INR 175,960 crore) in FY 2023-24. North America, accounting for 32 percent of exports, saw an increase of 8.4 percent, while Europe, accounting for 29.5 percent, witnessed a decline of 2.1 percent. Asia, accounting for 26 percent, witnessed 15.1 percent growth. Top export categories included drive transmission & steering, engine components, suspension, braking, and body/chassis parts.
Imports: Imports stood at US$ 22.4 billion, growing 7.3 percent, with Asia accounting for two-thirds of the total. The industry registered a trade surplus of US$ 453 million, indicating strengthening global competitiveness and enhanced localization efforts. Trade surplus stood at US$ 300 million in FY 2023-24.
Aftermarket: The aftermarket grew by 6 percent to INR 99,948 crore (US$ 11.8 billion), driven by an expanding used vehicle base, formalization of the repair ecosystem, and stronger rural demand supported by e-commerce penetration.

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