Indian Auto Components Industry Sees 11.3% Growth in H1 FY25, Reaching Rs 3.32 Lakh Crore
The Indian auto components industry is celebrating a significant milestone, with the latest figures showing an impressive 11.3% growth in the first half of FY25. The market size surged to Rs 3.32 lakh crore ($39.6 billion) compared to Rs 2.98 lakh crore ($36.1 billion) in the same period last year. This growth signals a continued recovery and strong performance, particularly driven by increased demand for more powerful vehicles and the steady performance of the export market.
One of the key trends contributing to this growth is the growing consumer preference for larger and more powerful vehicles. Utility Vehicles (UVs) in the Passenger Vehicle (PV) segment have seen a remarkable 13% increase in demand, with specific models like the UV1 experiencing a 25% jump in sales. The two-wheeler segment also contributed significantly, with motorcycles in the 350-500cc range witnessing a massive 74% increase in sales.
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Electric vehicles (EVs) have further bolstered the industry's growth. EV sales overall grew by 22%, and electric two-wheelers (e-2W) alone saw a 26% increase. However, it’s important to note that electric passenger vehicles (e-PVs) experienced a slight decline of 19%, which may be indicative of the challenges the sector faces in certain categories. Despite this, the industry’s overall outlook remains positive, especially with strong growth across exports.
Exports played a crucial role in the industry’s success, with a 7% rise in shipments, reaching $11.1 billion (Rs 93,342 crore) in H1 FY25. The USA, Germany, and Turkey emerged as the top destinations, highlighting the global demand for Indian-made auto components. This growth was also supported by a trade surplus of $150 million, showing the strength of India's auto component manufacturing capabilities.
The supply to Original Equipment Manufacturers (OEMs) also saw a notable increase of 11.2%, reaching Rs 2.83 lakh crore ($33.8 billion). The aftermarket segment grew by 5%, totaling Rs 47,416 crore ($5.7 billion), with rising e-commerce penetration contributing to its expansion, particularly in rural and semi-urban markets.
Looking ahead, the industry's growth is expected to remain steady, supported by continued investments in technology upgrades, localization, and higher value-added components. The shift in consumer preferences towards larger, more feature-rich vehicles is likely to further drive demand in both the domestic and export markets. Despite some challenges, such as higher delivery times and rising freight costs, the auto components sector in India appears resilient and well-positioned for the future.
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