Invest In India
AUTO COMPONENTS
- With the growth in the Automobile Sector at domestic as well as the global level, there is
an increase in the Original Equipment Manufacturers (OEMs) in the Indian
Manufacturing landscape.
- The Indian auto-components industry has experienced healthy growth over the last few
years and is expected to become third largest by 2025.
- The Auto Components industry exports are currently valued at USD 15.2 bn. India is an
emerging global hub for sourcing auto components. It offers a favorable scenario with a
trade policy without restrictions on import-export and a 100% FDI Inflow.
- Growing demand by expanding middle-class.
- GST on electric vehicles has reduced from 12% to 5%.
- Second largest steel producer, leading to low costs.
- Relative to operations in Europe and Latin America, a cost effective manufacturing base
keeps costs lower by 10-25%.
- 100% FDI allowed under the automatic route.
- Proximity to key markets such as ASEAN, Japan, Europe, Middle East and Korea, creating
an export opportunity.
