India's automotive component production to reach $145 bn by 2030: NITI Aayog

IANS April 11, 2025 147 views

India's automotive sector is poised for remarkable growth, with NITI Aayog projecting a leap to $145 billion in component production by 2030. The sector is expected to triple its exports, create millions of jobs, and increase its global value chain share from 3% to 8%. Technological shifts like electric vehicles and Industry 4.0 are driving this transformation, positioning India as a key global automotive manufacturing hub. Strategic government interventions and initiatives like 'Make in India' are supporting this ambitious growth trajectory.

"India is positioning itself as a hub for automotive manufacturing and exports" - NITI Aayog Report
New Delhi, April 11: The country's automotive component production is set to grow to $145 billion by 2030, with exports tripling from $20 billion to $60 billion, while generating 2-2.5 million new employment opportunities, a NITI Aayog report projected on Friday.

Key Points

1

India to grow global automotive value chain share from 3% to 8%

2

Projected 2-2.5 million new employment opportunities

3

Electric vehicles and Industry 4.0 driving sector transformation

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Strategic interventions planned for global competitiveness

This growth would lead to a trade surplus of approximately $25 billion and a significant increase in India's share of the global automotive value chain from 3 per cent to 8 per cent, according to the report titled "Automotive Industry: Powering India's Participation in Global Value Chains".

Additionally, this growth is expected to generate 2-2.5 million new employment opportunities, bringing the total direct employment in the sector to 3-4 million, the report mentioned.

India has emerged as the fourth-largest global producer after China, the US and Japan, with an annual production of nearly 6 million vehicles.

The Indian automotive sector has gained a strong domestic and export market presence, particularly in the small car and utility vehicle segments. Supported by initiatives like 'Make in India' and its cost-competitive workforce, India is positioning itself as a hub for automotive manufacturing and exports, the report noted.

It was launched by Suman Bery, Vice Chairman, NITI Aayog in presence of Dr VK Saraswat, Member, NITI Aayog and other officials.

The automotive industry is undergoing a transformative shift towards electric vehicles (EVs), driven by rising consumer demand for sustainable mobility, regulatory pressures to reduce carbon emissions, and advancements in battery technology. EV sales have surged globally, reshaping the automotive manufacturing landscape.

In parallel, the rise of Industry 4.0 is transforming automotive manufacturing. Technologies such as Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), and robotics are enhancing production processes, improving productivity, reducing costs, and enabling greater flexibility.

These digital advancements are not only optimizing manufacturing but also fostering new business models centred around smart factories and connected vehicles, said the report.

NITI Aayog's report also outlined several strategic fiscal and non-fiscal interventions aimed at enhancing India's global competitiveness in the automotive sector.

The interventions are structured across four categories of automotive components based on their complexity and manufacturing maturity --emerging and complex; conventional and complex; conventional and simple; and emerging and simple.

Reader Comments

R
Rahul K.
This is fantastic news for India's manufacturing sector! The job creation potential alone could transform so many lives. Hope the EV transition happens smoothly alongside this growth. 🇮🇳
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Priya M.
While the projections look impressive, I hope the government ensures proper training programs for workers to handle the new Industry 4.0 technologies. We don't want quantity at the cost of quality.
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Ankit S.
$145 billion is massive! Our auto component manufacturers have come a long way. Remember when we used to import so many parts? Now we're becoming export leaders 💪
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Sunita R.
The EV transition part worries me a bit. Are we investing enough in charging infrastructure and battery recycling? Growth is good but sustainability matters too.
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Vijay T.
Great to see India moving up in global rankings! Fourth largest producer already - that's something to be proud of. The Make in India initiative seems to be working well for this sector.
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Neha P.
Exciting times ahead! Just hope the benefits reach smaller towns too, not just the big industrial hubs. More balanced regional development would be ideal.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Automotive Industry NITI Aayog India Manufacturing Electric Vehicles Economic Growth Suman Bery VK Saraswat
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