The Indian auto-components industry can be broadly classified into the organised and unorganised sectors. The organised sector caters to the Original Equipment Manufacturers (OEMs) and consists of high-value precision instruments while the unorganised sector comprises low-valued products and caters mostly to the aftermarket category.
India’s exports of auto components increased at a CAGR of 8.34 per cent, during FY14-FY19, with the value of auto component exports increasing from US$ 10.16 billion in FY14 to US$ 15.17 billion in FY19. This has been driven by strong growth in the domestic market and increasing globalisation (including exports) of several Indian suppliers. Growth is further expected to accelerate to 8-10 per cent in FY19 due to pick up in global scenario. ** Turnover of the aftermarket has increased at a CAGR of 11.35 per cent from US$ 5.90 billion in FY14 to US$ 10.10 billion in FY19 and expected to reach US$ 32 billion by 2026. Turnover of automotive component industry stood at Rs 1.79 lakh crore (US$ 25.61 billion) in FY20 (April-Sept 2019). During April-September 2019, exports of auto components grew by 2.7 per cent to Rs 51,397 crore (US$ 7.35 billion).