India’s auto components industry is projected to grow at a compound annual rate of 10% between FY26 and FY30 as manufacturers expand into semiconductors, defence, aerospace, electric vehicles and data-centre equipment, according to Goldman Sachs.
Industry revenue is expected to rise from ₹7.56 lakh crore in FY26 to ₹11.87 lakh crore by FY30. Annual growth is estimated at 7% in FY27, 12% in FY28 and 10% in FY29, while EBITDA could increase at a faster CAGR of 15%.
The sector is gradually moving beyond conventional automotive supply chains by strengthening capabilities in precision engineering, advanced tooling and complex component manufacturing. Competitive production costs, skilled technical talent and a large domestic market are also helping Indian firms attract global companies seeking more diversified and resilient supply chains.
Electrification, rising exports, defence manufacturing, semiconductor production, aerospace, consumer electronics and the global redistribution of internal-combustion-engine manufacturing are expected to remain major growth drivers.
The transformation could enhance India’s export competitiveness, attract fresh investment and position the country as an important global centre for advanced automotive and precision-engineered components.
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