India's auto component industry targets USD 200 billion by FY30, BCG-ACMA report says

Industry Sets Ambitious Growth Target

The Indian auto components industry is targeting a turnover of approximately USD 200 billion by the financial year 2029-30, according to a joint report by Boston Consulting Group (BCG) and the Automotive Component Manufacturers Association of India (ACMA). The report, titled 'Beyond Resilience: Built to Endure, Designed to Win', notes that the industry has grown at a 17 per cent compound annual growth rate to reach USD 86 billion in FY26, backed by strong domestic and external demand.

Resilience Amid Disruptions

The report highlights that the industry has achieved about 70 per cent localisation and moved to a net trade surplus, even as it absorbed multiple disruptions over the past decade. These shocks include the 2019 slowdown, COVID, commodity spikes, and more recently, rare-earth curbs. BCG Partner Gurbani Bagga, speaking on the sidelines of the 66th Annual Session of ACMA, said the industry continued to expand despite disruptions such as COVID, GST-related changes, raw material issues, and global supply chain curbs. "These 10 years have been a period of significant volatility for the industry, with a lot of disruptions, be it COVID, the GST era, or multiple raw material issues and global supply chain disruptions. Despite all this, the industry continued to grow," she noted.

Industry Sentiment and Strategic Challenges

The report found that around 90 per cent of industry leaders surveyed believe they are "in the right place at the right time," even as nearly 78 per cent say business is riskier than it was a few years ago. It also flagged that the value pool is fragmenting across internal combustion engines and electric vehicles, mechanical and electronic systems, and domestic and export markets, forcing firms to make strategic choices between "investing ahead versus waiting, diversifying versus deepening, and automating versus investing in people."

Resilient companies have already demonstrated a margin advantage of nearly 1.4 percentage points, a gap that widened during tougher periods. The report recommends a five-part resilience roadmap covering people and talent, supply chains, demand mix, value addition, and technology enablement.

Leaders' Perspectives

Vikrampati Singhania, President of ACMA, said that reaching the USD 200 billion goal will require deeper localisation, greater value addition, stronger engineering capabilities, and sustained export competitiveness. "Resilience must now become a strategic capability that enables us to anticipate change and seize new opportunities," he added.

BCG Managing Director and Senior Partner Vikram Janakiraman said that resilience is increasingly becoming an operating advantage rather than simply a defensive capability. "Companies that invest ahead of disruption, build flexibility and strengthen capabilities can put themselves in a better position to navigate volatility and sustain performance," he said.

Saurabh Chhajer, Managing Director and Partner at BCG, predicted that companies pulling ahead will be the ones moving from isolated pilots to at-scale deployment.

Export Aspirations

Auto component exports, currently at USD 24 billion, are aspiring to reach USD 45 billion over the next five years, according to the report. This ambition underscores the sector's potential to contribute significantly to India's manufacturing and export growth.