New Delhi:
The Global Supply Chain has seen a strong growth in the export of auto components in the last few years due to India’s increasing importance. The major destination for export of motorcycle parts in the country includes Germany, Bangladesh, US, UK, UAE, Brazil, Turkian and Sri Lanka and other countries.
In the financial year 2023-24, the export of auto components from the country reached $ 21.2 billion, which shows a significant change in the fiscal year 2018-19 to $ 2.5 billion to $ 300 million surplus.
Industry can achieve an export target of $ 100 billion
Industry experts believe that India’s auto component industry can achieve a $ 100 billion export target, as global original equipment manufacturers (OEMs) are revaluating their supply chains and manufacturing strategies, making India a good opportunity to establish itself as a top global destination.
Expected an additional export of $ 40-60 billion
According to the latest report of the Automotive Component Manufacturing Association of India (ACMA) and Boston Consulting Group (BCG), India can prioritize an excess of $ 40-60 billion by giving priority to 11 products, focusing on markets in the US and Europe, by giving priority to 11 products.
The report further stated that taking advantage of emerging EV and electronic value chain through localization, India can export an additional $ 15-20 billion by making components like battery management system, telematics units, instrument clusters and ABS.
Global OEMs are India’s major customers in the auto component industry of India, with 20-30 percent of the exports. India is emerging as a cost-effective option in the German market with the influence of former European suppliers, offering auto components at low prices by up to 15 percent.
Chinese component 20-25% more expensive than India
Currently, auto components imported from Mexico and China are dominated in the US market. Mexico provides auto components at a price of 2-5 percent lower due to low logistics and tariff costs. In contrast, Chinese components are 20-25 percent more expensive than India, mainly due to additional tariffs.