Auto-components industry thrives, sees 10% growth
The Indian auto components industry has witnessed remarkable growth on the global stage. In the financial year 2024, the industry experienced a 10 per cent growth, driven by a 9 per cent increase in vehicle production and sales. Notably, India maintained a positive trade balance, with exports surpassing imports by $300 million, showing a significant improvement over the previous fiscal year.
Upkar Singh, president, Chamber of Industrial and Commercial Undertakings (CICU), said figures available with Auto Component Manufacturers Association (ACMA) showed that of the total export in auto-industry, Punjab contributed up to 10 per cent and the main auto-components industries were in Ludhiana, Jalandhar, Gobindgarh, Mohali and Khanna. “It is a sign of growth that India positions itself as the third largest auto industry globally across various segments,” said Ahuja.
He added the country led as the largest manufacturer of tractors and three-wheelers, the second-largest producer of two-wheelers, the third largest in the global construction equipment market and the fourth largest in passenger vehicle manufacturing. The auto components industry plays a vital role in India’s global trade, with significant exports to countries such as the US, Germany, Turkey, Brazil, UK, Italy, Bangladesh, Thailand, Mexico and the UAE.
“In US alone, 27 per cent of the total exports is from India followed by 8 per cent in Germany and 5 per cent in Turkey,” said Ahuja, who recently came back after attending the IAA Transportation Show in Europe, a leading platform renowned for showcasing new technology, innovation, startups and prototyping in logistics, commercial vehicles and transport sector.
Echoing similar views, Rahul Ahuja who deals in auto-components and is a former Chairman of the CII, said while the maximum exports were with the USA, imports in the segment primarily originated from China, Germany, South Korea, UK, Thailand, Singapore, Italy and Indonesia. Ahuja said India played a key role in the international automotive market.
Rise in auto-sector
is as follows:
Two-wheeler production saw a notable 10 per cent rise, with segments like 350cc, 500cc and 500cc experiencing growth rates of 33 and 55 per cent, respectively.
Passenger vehicle production has also increased by 7% with utility vehicles (UVs) now accounting for 56% of total production, up from 49%.
Additionally, the contribution of electric vehicles to the overall sales value of components stood at 6% from financial year 2024.
Industries in Ludhiana, Gobindgarh, Khanna major contributors
Notably, India maintained a positive trade balance, with exports surpassing imports by $300 million, showing a significant improvement over the previous fiscal year. Upkar Singh, president, Chamber of Industrial and Commercial Undertakings (CICU), said figures available with Auto Component Manufacturers Association showed that of the total export in auto-industry, Punjab contributed up to 10 per cent and the main industries were in Ludhiana, Jalandhar, Gobindgarh, Mohali and Khanna
