Auto Component industry Clocks 9.6% in FY25, Nearly Doubles In Five Years

Pune:The India auto component industry grew 9.8 per cent year-on-year in FY25 to Rs 6.73 lakh crore (USD 80.2 billion), the Auto Component Manufacturers Association or ACMA said on Tuesday.

Between FY20 and FY25, the sector grew at a CAGR of 14 per cent, nearly doubling in size over the past five-year period.

Significantly, auto component supplies to original equipment manufacturers (OEMs) stood at Rs 5.70 lakh crore, registering a 10 per cent year-on-year growth, driven by an 8 per cent rise in overall vehicle production in the country.

“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 Rs. 6.73 lakh crore ($80.2 billion) in FY25,” said Vinnie Mehta, Director General, ACMA.

Notably, the trade surplus was $453 million—a testament to India’s growing manufacturing competitiveness in the global market and localization initiatives, he said.

“The aftermarket, estimated at Rs 99,948 crore, also witnessed a growth of 6 per cent,” Mehta noted.

“The Indian auto component sector continues to be a cornerstone of the country’s manufacturing prowess with FY25 being yet another milestone year where the industry’s growth was underpinned by strong domestic demand, rising exports, and increasing value addition,” said ACMA President and Subros CMD Shradha Suri Marwah said.

Exports of auto components grew by 8 per cent to $22.9 billion (Rs 192,346 crore) from $21.2 billion (Rs.1,75,960 crore) in FY24.

North America, accounting for 32 per cent of exports, saw an increase of 8.4 per cent, while Europe, accounting for 29.5 per cent, witnessed a decline of 2.1 per cent.

Asia, accounting for 26 per cent, witnessed 15.1 per cent growth. Top export categories included drive transmission & steering, engine components, suspension, braking, and body/chassis parts.

Imports stood at $22.4 billion, growing 7.3 per cent, with Asia accounting for two-thirds of the total. China continued to dominate the auto component imports, accounting for 29 per cent of total imports in FY25.

The industry registered a trade surplus of $453 million, indicating strengthening global competitiveness and enhanced localization efforts. Trade surplus stood at $300 million in FY 2023-24.

The aftermarket grew by 6 per cent to Rs. 99,948 crore ($11.8 billion), driven by an expanding used vehicle base, formalization of the repair ecosystem, and stronger rural demand supported by e-commerce penetration.