Quick snapshot — scale & recent growth

• India’s auto-component exports have been rising steadily: exports were about US$21.2–22.9 billion in recent fiscal years (FY23–FY25), with ACMA reporting US$22.9 billion in FY25 (≈₹192,346 crore) and growth of ~8% year-on-year. Exports moved India to a modest trade surplus in the sector in FY24–FY25
• Industry bodies and trade promotion agencies expect the sector to keep growing strongly (several forecasts / industry statements project rapid growth toward higher export targets in coming years).

What India exports

• Top export categories include drive transmission & steering parts, engine components, brake systems, electricals/electronics, body parts, suspension parts and other powertrain items. ACMA’s EXIM reports show drive transmission & steering and engine components among the largest value contributors.
• Exports serve both OEM (vehicle manufacturers) supply chains and aftermarket demand; a substantial portion is integrated into global OEM supply chains (tier-1/tier-2 suppliers).

Top export destinations

• North America (largest single market), Europe and Asia are the primary destinations. ACMA/FY25 data indicate North America (~32% share) and Europe (~29.5%) as leading regions by value; Asia and Latin America are growing fast.

Regional strengths — India’s clusters and what they specialise in

• Chennai / Tamil Nadu (Hosur, Coimbatore) — major hub for passenger-vehicle components, engines, and a growing EV components ecosystem (battery/EV suppliers). Tamil Nadu hosts many OEMs and tier-1s, with strong port connectivity for exports.
• Pune / Pimpri-Chinchwad (Maharashtra) — engineering, precision components, driveline systems and high-end machining; proximity to luxury and commercial vehicle manufacturing.
• Gurugram / Manesar / Faridabad (Haryana / NCR) — strong for passenger-vehicle components, plastics, and assemblies due to large OEMs (Maruti, Hero) nearby; good logistics links to northern markets.
• Sanand (Gujarat) — vehicle and component cluster (notably passenger vehicles and some global OEM investments), strong port and road logistics.
• Other pockets: Indore/Indo-Gangetic industrial belts, Vasai–Palghar (near Mumbai), and smaller specialised hubs across states for casting, forging, and plastics.

Quality, standards & certifications (why global buyers trust Indian suppliers)

• IATF 16949 / ISO-based systems: Many Indian component makers adopt IATF 16949 (the global automotive quality management system) and ISO standards; national standards such as IS 15716 align with international norms—this is a big enabler for exporting to strict markets.
• Tiered supplier maturity: Large Indian tier-1 suppliers meet global OEM protocols (PPAP, APQP, FMEA), which enables Indian components to be integrated into global vehicle platforms. ACMA and industry reports note rising localization and higher value-add content in exports.

Policy & incentives that strengthen exports

• PLI (Production-Linked Incentive) Scheme for Automobile & Auto Components — Central government scheme (approved Sept 15, 2021) with ~₹25,938 crore outlay (FY2022–27) to incentivize advanced automotive technologies (AAT) manufacturing, deeper localization and global supply chain creation. This directs investment into higher-value parts (EV components, semiconductors-related modules, advanced powertrain).
• Other supports: Make-in-India, export promotion programs and state-level incentives boost capex in clusters and help exporters reach global buyers.

India’s competitive strengths

1. Cost competitiveness — lower manufacturing & labour costs vs many western suppliers, helping global OEMs reduce bill-of-materials (BoM) cost.
2. Scale & ecosystem — a deep supplier base (casting, forging, machining, plastics, electronics) allowing rapid localization and end-to-end supply.
3. Engineering talent & R&D — growing engineering services and product engineering capability (design, testing), enabling more complex modules to be produced in India.
4. Improving quality track record — widespread adoption of automotive QMS (IATF 16949) and tighter quality controls have increased acceptance in premium markets.
5. Government support — PLI and state incentives targeting AAT products (batteries, power electronics, precision parts) are attracting global buyers.

Key challenges & regional risks

• Supply chain concentration for critical inputs — e.g., reliance on China for rare-earth magnets and certain electronic components. Recent export controls on magnets have posed short-term production risks. Buyers should plan for dual sourcing or inventories. (Reuters reporting May 2025).
• Technology gaps for very high-end products — India is rapidly moving up the value chain, but for some ultra-high precision or semiconductor-heavy modules, buyers may still source from Europe/Japan/Korea unless further localization occurs.
• Logistics & last-mile export infrastructure — improving (rail freight corridors, port expansions, e.g., investments under PM GatiShakti and rail links to plants) but uneven across regions; clusters with better connectivity (Chennai, Mundra/JNPT, Pune, Sanand) are preferred for exports.

Practical takeaways / recommendations

• If you want volume drive parts or engine components: look to suppliers in Pune, Chennai, Hosur — these clusters have machining, casting and experienced tier-1s.
• For electrification parts / EV-related modules: prioritize suppliers in Chennai, Coimbatore, Pune and companies participating in the PLI-Auto scheme (those firms investing in AAT).
• Check certifications: require IATF 16949, documented PPAP packages, and third-party test reports for safety/EMC as applicable.
• Mitigate input-risk: ask suppliers for raw-material sourcing maps (magnets, semiconductors) and contingency plans given geopolitical supply sensitivities.