Automotive Industry - #SectorUpdates
The auto component industry in India recorded its highest trade surplus of USD 700 million in a financial year in 2021-22. Auto component exports increased 43% to a record USD 19 billion in 2021-22. For Indian auto parts makers North America is the largest overseas market, accounting for 32% of overall exports last fiscal. During the fiscal, auto component imports amounted to USD18.3 billion. Twelve key components with localisation potential has been identified by the automotive industry – including drive transmission, steering, engine, engine components, electrical, electronic components, iron and steel – to cut imports 15-20% over a period of five years. The production-linked incentive (PLI) schemes of Rs 44,038 crore announced by the Government for advanced chemistry cell batteries, auto and auto components makers and increased focus by the auto industry on deep-localisation will likely to aid in developing India into an attractive alternative source of high-end auto components.