Auto component exports jump by 8% to $22.9 bn in FY25

New Delhi: India’s exports of auto components jumped by 8% to $22.9 billion in the financial year ended March 2025 led by strong growth in shipments to Asia, Africa and North America, as per data released by the Automotive Component Manufacturers Association of India (ACMA) on Tuesday.

Nearly one-third of the total auto component shipments from India went to North America. Exports to North America increased by 8.4% to $7.35 billion. India’s auto component exports to Asia jumped by 15.1% to $5.92 billion and to Africa by 16.7% to $1.16 billion.

However, shipments to Europe declined by 2.1% year-on-year to $6.75 billion in 2024-25.

Speaking at a media briefing ACMA Director General Vinnie Mehta said in the auto component sector India registered a trade surplus of $453 million during the year 2024-25, which is higher than around $300 million surplus recorded in 2023-24.

“It is a testament to India’s growing manufacturing competitiveness in the global market and localisation initiatives,” he said.

On the challenges to the sector in the current financial year, Mehta said China’s rare earth magnet curb has negatively impacted the sector and the industry does not see any immediate solution coming.

“We’re facing challenges on the front of rare earth magnets from China. Again, there is no visibility here as to when we’ll be able to resolve this issue,” he said.

He said rare earth magnets availability, freight costs and raw material price volatility are among the key factors that pose serious challenges to the auto component sector.

Nearly one-third of India’s auto component imports come from China. Other major sources of India’s imports are Germany, Japan, South Korea and the US.

During the fiscal year 2024-25, the gross turnover of India’s automotive component industry increased to Rs 6.73 lakh crore ($80.2 billion), which is 9.6% higher when compared with the previous year. The industry grew at a CAGR of 14% from FY20 to FY25, nearly doubling in size over the past five-year period.

“The fiscal year witnessed broad-based growth and recovery across segments. While two-wheelers demonstrated robust growth, the passenger vehicle and commercial vehicle segments experienced steady, albeit moderate, momentum,” said Shradha Suri Marwah, President, ACMA.

“On the exports front, ongoing geopolitical challenges have led to supply-chain challenges. Nevertheless, the industry continues to show remarkable resilience and remains in robust health,” she said.