India's auto sector is ready to attract overseas investment, especially from the European FTA countries (EFTA), Commerce and Industry Minister Piyush Goyal said on September 9.
Speaking at the annual session of auto component makers association ACMA, Goyal said he is confident the auto component industry will reach the $100 billion export target by 2030. As India strives to be the third-largest economy, Goyal added that the auto sector has the potential to be one of India's largest job creator.
The Commerce Minister said the industry should now focus enhancing Research and Development (R&D), and move towards capturing opportunities in new-age areas like electric vehicles and related ecosystems. He said players in India's automotive sector should look to combine organic growth with global outreach. "Let’s make Bharat the one-stop shop for everything related to the auto sector," Goyal said.
Goyal added that world class mega-exhibitions like Bharat Mobility is a testimony of India's successful automotive value chain and showcases the India story to the world. Minister Goyal added that Bharat Mobility 2025 will be grander, and have greater international participation.
Goyal also appealed ACMA to make use of the recent initiative of industrial smart cities to develop business and enhance exports.
The turnover of India's automotive component industry was Rs 6.14 lakh crore for FY24, as per ACMA's estimates. The industry had reported a turnover of Rs 5.59 lakh crore in FY23. Component supply to OEMs (original equipment manufacturers) grew by 8.9 per cent to Rs 5.18 lakh crore, with supply to the EV manufacturing industry accounting for 6 per cent of the total component production in India.
For Indian auto parts, Europe is both the largest as well as the fastest growing export market, however, USA is the most crucial single destination for exports, with China being a key source of imports.
The new entrants in the electric mobility space and Government's focus on ESG and sustainability are strong drivers for the growth of auto parts business in India.
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