Auto Industries Poised for Global Leadership, Self-Reliance Targets by 2030 A report by ACMA and McKinsey & Co., titled 'Scaling Global Competitiveness and Self-Reliance,' laid out a bold growth trajectory. With a projected compound annual growth rate (CAGR) of 7-8%, the Indian auto component sector is expected to reach $200 billion by 2030.
4 min read
Union Minister of Commerce & Industry, Piyush Goyal addressed the 64th Annual Session of the Automotive Component Manufacturers Association of India (ACMA) in New Delhi, India.
NEW DELHI: The 64th Annual Session of the Automotive Component Manufacturers Association of India (ACMA), marked a decisive turning point for India’s auto component industry, unveiling the country’s ambitious plans to drive global competitiveness and deepen self-reliance. Under the theme Viksit Bharat – Fostering Self-Reliance & Global Competitiveness in Mobility Components,’ the session served as both a strategic update and a call to action, positioning India to emerge as a leader in the global automotive value chain.
A New Era for Auto Components: Global Competitiveness Meets Self-Reliance
One of the session’s pivotal moments was the launch of the ACMA Mobility Foundation by Union Minister of Heavy Industries, H.D. Kumaraswamy. This initiative represents the convergence of software, electronics, and startups with the traditional automotive sector, setting the stage for disruptive innovation in India’s mobility solutions. The ACMA Mobility Foundation positions India to not only meet the rising global demand for electric vehicles (EVs) and connected mobility but also redefine its role in the global automotive supply chain.
Comparatively, while many emerging markets have focused on cost competitiveness, India is stepping forward with a holistic vision that integrates innovation, sustainability, and scale. The Foundation’s focus on startups and technology integration will likely put India ahead of countries that are slower to adapt to the software-driven automotive revolution.
Market Projections and Growth Trajectory: A $200 Billion Industry by 2030
The release of the joint report by ACMA and McKinsey & Co., titled ‘Scaling Global Competitiveness and Self-Reliance,’ laid out a bold growth trajectory. With a projected compound annual growth rate (CAGR) of 7-8%, the Indian auto component sector is expected to reach $200 billion by 2030. This growth is not just about scale, but about building quality, innovation, and sustainability into the DNA of Indian manufacturing.
The Indian auto component industry is positioned uniquely against peers such as China and South Korea—both of whom have grown by leveraging export opportunities and technological leadership. India’s renewed focus on sustainability standardsand R&D investment will likely allow it to carve out a competitive edge, making it a preferred sourcing destination for global automakers.
Ministerial Endorsements: A Call for Global Leadership
Nitin Gadkari, Union Minister of Road Transport & Highways, underscored India’s automotive ascendancy, noting that India has now surpassed Japan to become the world’s third-largest automobile industry, valued at ₹22 lakh crore. His projections of 8-10% growth by 2024-25 emphasize that local production of semiconductors and lithium-ion batteries will reduce import dependencies and solidify India’s role as a global manufacturing hub.
This optimistic growth outlook sets India on a direct competitive path with global automotive giants like Germany, South Korea, and Japan. However, India’s push into next-generation technologies such as EVs and autonomous driving systems gives it an edge in future markets, particularly in emerging economies.
Export Opportunities and Job Creation: The Twin Pillars of Growth
Piyush Goyal, Union Minister of Commerce & Industry, further projected that India’s auto component exports could reach $100 billion by 2030. This growth would not only make the sector a major foreign exchange earner but also one of the largest job creators in India. The industry currently employs over 4.15 lakh people and this number is expected to surge as India grows its global market share.
The pursuit of export-driven growth, a strategy long employed by Germany and Japan, is now India’s key to unlocking its global potential. India’s competitive advantage lies in its skilled labor force, cost efficiencies, and increasing focus on **quality manufacturing—key factors that will drive its global competitiveness in the coming years.
The Future of Sustainable and Inclusive Mobility
Highlighting the theme of inclusivity, ACMA also announced a gender diversity initiative in partnership with the Gates Foundation and Good Business Lab, aiming to make the automotive sector more inclusive. This initiative mirrors global trends in workforce diversification, making India a forerunner in **social inclusion** in manufacturing.
Furthermore, Ms. Shradha Suri Marwah, President of ACMA, emphasized the importance of future-ready solutions, particularly in electric mobility and green technologies. By aligning the ACMA Mobility Foundation’s launch with World EV Day, the industry is signaling its commitment to sustainable and eco-friendly mobility..
-Dr. Shahid Siddiqui; X @shahidsiddiqui
