India's Auto Component Exports: Which Parts Are in Highest Demand?

Tue, 30 Jun 2026

India's Auto Component Exports: Which Parts Are in Highest Demand?

India's auto component industry crossed $22.9 billion in exports in FY25, up 8% from $21.2 billion the year before. That number gets less attention than it deserves because it sits inside a much larger sector story - the industry's total turnover was $80.2 billion, growing at a 14% CAGR since FY20. But the export piece is what matters for international buyers trying to understand what India offers, and for Indian manufacturers trying to know where global demand is actually concentrated.

McKinsey's projection - $70-100 billion in auto component exports by FY30 - is the headline. Whether India hits the lower or upper end of that range depends on three things happening simultaneously: continued growth in conventional component exports, successful capture of EV component demand as global fleets electrify, and resolution of India's own import dependency (China still supplies 29% of what India imports in this category, which creates a strategic vulnerability alongside the export opportunity).

The industry generated a trade surplus of $453 million in FY25 - not large relative to the total, but meaningful as a signal. India is a net exporter of auto components. For an economy that was a large net importer just a decade ago, that reversal reflects genuine manufacturing competitiveness built over time.

This guide covers the six product categories that dominate Indian auto component exports, the manufacturing clusters behind them, who buys them and why, the EV opportunity that is changing the demand profile, and what new and existing exporters need to know about compliance and market entry.

The Export Picture at a Glance

Metric	FY25 Data	FY26 H1 (Apr–Sep 2025)
Total exports	$22.9 billion	$12.1 billion (+9.3% YoY)
North America share	32% (8.4% growth)	Largest market
Europe share	29.5% (2.1% decline)	Second market
Asia share	26% (15.1% growth)	Fastest growing
Trade surplus	$453 million	Trade deficit of $180M (imports growing faster)
CAGR since FY20	14%	-
McKinsey target FY30	$70-100 billion	-

Top export categories by share:

Drive transmission and steering: 34% (largest single category)
Engine components: 20%
Electrical and electronics: 11%
Body and chassis: ~10%
Suspension and braking: ~8%

Sources: ACMA FY25 Press Release (July 2025), IBEF Auto Components Report, Autocar Professional, Business Standard (H1 FY26 data, January 2026)

One data point worth flagging: the H1 FY26 trade deficit. Imports grew at 12.5% while exports grew at 9.3%, creating a $180 million deficit versus the $150 million surplus in H1 FY25. The ACMA flagged this directly - rising imports of EV-related components (particularly electronics and battery systems) are driving the deficit. This is the structural tension India's auto component sector is navigating: growing conventional exports while trying to capture EV component demand before the import bill expands further.

1. Drive Transmission and Steering - India's Export Leader

At 34% of total auto component exports, drive transmission and steering parts are India's dominant export category - and the position makes sense when you understand where India's manufacturing depth lies.

Drive transmission systems - gearboxes, driveshafts, axles, differentials, CV joints, clutch assemblies - require precision forging, heat treatment, and assembly capabilities that India has built over decades through companies serving both domestic OEMs and global supply chains.

What moves: Manual and automatic gearbox components, propeller shafts, drive axles for passenger vehicles and commercial vehicles, CVT components, differential assemblies. Power steering components, rack-and-pinion systems, and steering columns for both conventional and EPS (electric power steering) applications.

Who makes it: Bharat Gears (Faridabad), GKN Driveline India (Pune), Sona BLW Precision Forgings (various plants - also a major EV component player), JTEKT India (steering), NSK India (bearings and steering), Rane Holdings (Chennai - steering and transmission). Many of these operate as Tier 1 suppliers to Indian OEMs and simultaneously export to global vehicle manufacturers.

Key buyers: US OEMs and automotive aftermarket distributors (North America is 32% of total exports; drive transmission is the leading category within this), German precision component manufacturers, Japanese automakers with Indian supplier qualifications.

The EV angle on drive transmission is real and worth understanding. EVs eliminate traditional multi-speed gearboxes - but they create demand for single-speed reduction gears, differential assemblies suited to electric drivetrains, and e-axle components. India's forging and precision manufacturing capability is being redirected toward these EV-specific parts. Sona BLW has been a leader in positioning its forged components for EV drivetrain applications - its order book includes significant EV content from US and European clients.

Broswe : Transmissions Suspension and Steering Systems

2. Engine Components - Dominant Today, Evolving Tomorrow

Engine components account for approximately 20% of India's auto component exports, and they represent both a current strength and a pending strategic question.

The current strength: India is one of the world's most significant exporters of precision-machined engine parts - cylinder heads, pistons, piston rings, crankshafts, camshafts, connecting rods, valve train components, fuel injection equipment. Indian manufacturers have qualified for Tier 1 supply to virtually every major global automaker.

Who makes it:

Bharat Forge (Pune) - One of the world's largest forging companies. Crankshafts, connecting rods, front axle beams, and structural components for commercial vehicles. Exports to US truck manufacturers, German and European OEMs. The company has operations across Europe and the US alongside Indian manufacturing.
Sundram Fasteners (Chennai) - Bolts, nuts, precision components, and high-tensile fasteners for automotive applications. Exports to GM (their first international customer), BMW, Volkswagen, and automotive Tier 1 suppliers globally. Started in 1966 and has built a global supply relationship network over decades.
Ramkrishna Forgings (Kolkata) - Commercial vehicle components, forged steel parts, railway components.
Endurance Technologies (Aurangabad) - Die-cast aluminum components, brakes, suspension systems. Strong Europe presence.
Rico Auto Industries - Ferrous and aluminum die castings for engine and transmission applications.

The pending strategic question: as electric vehicle penetration rises, demand for internal combustion engine components will eventually decline. This is a long transition - ICE vehicles will remain the majority of global vehicle sales for at least another decade - but Indian engine component exporters are tracking the timeline carefully. The smart ones are simultaneously investing in machining capability for EV-adjacent components (housings, motor mounts, structural parts) rather than just maximizing ICE component output.

Broswe : Engine Components

3. Electrical and Electronic Components - The Fast-Growing Export Category

At 11% of exports and growing faster than most other categories, auto electricals and electronics represent India's most strategically important emerging export strength.

This is where the EV and connected vehicle trends create demand that Indian companies are positioned to capture. The global automotive electronics market is projected to surge from $10.6 billion (India's segment estimate) to around $74.4 billion by a relevant forecast horizon - the growth is not gradual, it is structural.

What moves from India:

Wiring harnesses and electrical systems - Samvardhana Motherson International (SMI) is one of the world's largest wiring harness manufacturers. Its Indian operations serve global OEMs including Mercedes-Benz, BMW, Volkswagen, and US manufacturers. Wiring harnesses for a modern vehicle can contain 1,500+ wires and multiple kilometers of cabling.
Lighting systems - Varroc Lighting Systems has supplied exterior lighting for Tesla Model S and Model X - an Indian-made component in a global EV benchmark. MINDA Industries, JMT Auto, Lumax Industries.
Sensors and electronic control units - Growing export category. India's engineering talent is being deployed in automotive ECU development and production.
Battery management electronics - Early-stage but growing. India's EV component strategy specifically targets BMS components.
Alternators and starters - Established export category to aftermarket buyers globally.

The rare earth issue: ACMA specifically flagged the "limited availability of rare-earth magnets" as a concern in its FY25 analysis. EVs require rare earth permanent magnets for motors. India's rare earth magnet supply chain is underdeveloped. This is a genuine structural challenge for India's aspiration to be a major EV component supplier - motors without competitively priced permanent magnets are a problem that domestic policy and supply chain development need to address.

Browse : Auto Electrical Parts

4. Suspension and Braking - Aftermarket and OEM Both Growing

Suspension and braking components sit at roughly 8-10% of India's auto component exports, strong in both the OEM supply chain and the global automotive aftermarket.

Suspension: Shock absorbers, springs, control arms, anti-roll bars, ball joints. Gabriel India, Endurance Technologies, Mando India, and Monroe-JTEKT are the key players. Gabriel India exports shock absorbers to aftermarket distributors across Europe, the Middle East, and Southeast Asia.

Braking: Disc brake pads, brake linings, drums, brake fluid, ABS components. Brakes India (Chennai, part of TVS Group), Endurance Technologies, and Sundaram-Clayton are among the major manufacturers.

The global automotive aftermarket is a particularly strong opportunity for Indian braking and suspension exporters. Aftermarket buyers - particularly in the US and Europe - are increasingly diversifying away from OEM-priced replacement parts toward cost-competitive equivalents. Indian brake pads and shock absorbers hitting the same quality standards as European equivalents at 20-30% lower prices have found consistent demand.

The EV angle here is different from engine components: Suspension engineering for EVs is essentially the same as for conventional vehicles (the heavy battery pack actually changes suspension tuning requirements, creating new engineering demand). Braking sees a shift toward regenerative braking that reduces friction brake wear — but friction brakes remain essential as a backup and for emergency stops, keeping the category viable. The change is gradual, not abrupt.

Browse : Braking Systems Suspension

5. Body and Chassis - Structural Parts and Stampings

Body and chassis components - sheet metal stampings, structural frame parts, doors, hoods, roof panels, body cross members - represent approximately 14% of OEM supplies and a meaningful share of exports, primarily to vehicle manufacturers in developing markets and to aftermarket suppliers globally.

India's strength: Sheet metal stamping for body panels. India has significant capacity for precision die stamping that serves both domestic OEM requirements (all major passenger vehicle manufacturers in India outsource stampings) and export.

Tata AutoComp Systems, Shriram Pistons (body components), and numerous Tier 2 manufacturers supply body structural components. The commercial vehicle segment - bus bodies, truck chassis components - is an export category where India is competitive in markets where large-scale European or Japanese commercial vehicle manufacturers operate.

The aftermarket body parts trade: One underappreciated export category is aftermarket replacement body panels - replacement fenders, hoods, doors for vehicles involved in accidents. Indian stamping manufacturers have been supplying the US and European aftermarket with replacement body panels that pass quality standards at competitive prices.

Browse : Body Parts

6. Tyres and Rubber Products - The FY26 Breakout

Tyres deserve separate mention because FY26 has been remarkable.

IBEF flagged record tyre exports in FY26, reflecting global demand strength, market diversification, and capacity expansion by India's major tyre manufacturers. Apollo Tyres, MRF, CEAT, Bridgestone India, Michelin India, and Goodyear India together represent significant export capacity.

Indian tyres export to the US, EU, Middle East, Southeast Asia, and Africa. The aftermarket is the primary export channel (OEM-specification tyres are generally produced closer to vehicle assembly plants), but the aftermarket replacement tyre business is large and global.

Apollo Tyres has European plants (Netherlands) and sells under its own brand in EU markets - unusual for an Indian company in this category. MRF exports under its own brand to Gulf and Southeast Asian markets.

Two-wheeler tyres are a specific Indian export strength because India is the world's largest two-wheeler market and has manufacturer-scale production of two-wheeler tyres that find global buyers in Southeast Asia, Africa, and the Middle East.
Browse : Tires and Wheels Automotive Seats

Where India's Auto Components Come From: Key Clusters

Understanding the geography matters for buyers doing supplier qualification.

Chennai, Tamil Nadu - "The Detroit of Asia" The most concentrated automotive manufacturing cluster in India. Hyundai, BMW, Ford, Renault-Nissan, Royal Enfield, Ashok Leyland, and TAFE all manufacture here or nearby. The component supply ecosystem includes Brakes India, Sundram Fasteners, TVS Group companies, Wheels India, and hundreds of Tier 2 and Tier 3 suppliers. For engine components, braking systems, and commercial vehicle parts - start here.

Pune, Maharashtra Tata Motors, Mercedes-Benz (Pune area), Volkswagen (Chakan), General Motors (exited), Bajaj Auto, and Force Motors drive demand. Component suppliers include Bharat Forge, Endurance Technologies, Finolex Cables (automotive wiring), and numerous precision machining companies. The Chakan-Talegaon belt is a dense Tier 1 and Tier 2 supplier zone. Strong in forgings, castings, and precision machined components.

Gurugram/Faridabad/Noida, Delhi NCR Maruti Suzuki's primary manufacturing base; Hero MotoCorp. Component suppliers in NCR include Minda Industries, Lumax Industries, JBM Auto, Bharat Gears, and electronics component manufacturers. Strong in two-wheeler components, auto electricals, and wiring harnesses.

Ahmedabad/Rajkot, Gujarat Strong in forgings, castings, and metal components. Rajkot is a significant auto component manufacturing cluster — smaller foundries and machining operations that supply Tier 1 buyers. Gujarat's broader industrial ecosystem supports auto component manufacturing.

Aurangabad and Nashik, Maharashtra Bajaj Auto (Aurangabad), Bajaj Electricals, Endurance Technologies, and Wabco India. Strong in two-wheeler components and commercial vehicle systems.

Coimbatore and Hosur, Tamil Nadu Precision engineering, castings, and components. TAFE (Tractors and Farm Equipment) and its Tier 1 component suppliers. MINDA Corporation, Rane Holdings, and smaller precision engineering companies. The area between Chennai and Hosur (across the Karnataka border) is a dense two-wheeler and agricultural vehicle component zone.

Jamshedpur, Jharkhand Tata Motors Commercial Vehicles - India's largest commercial vehicle manufacturer. Component suppliers around Jamshedpur serve the truck and bus manufacturing base.

Who Buys India's Auto Components

United States - 27-32% of exports The largest single buyer. The US absorbs Indian auto components through two channels: OEM supply to US vehicle manufacturers (many of whom have Indian-origin suppliers in their Tier 1 or Tier 2 chains, often qualified through multinational Tier 1s with Indian operations), and the massive US automotive aftermarket - the largest in the world at over $400 billion annually. Indian forged parts, engine components, brake parts, and wiring harnesses all find US buyers through both channels.

The US tariff situation in 2025 created disruption. India-US trade framework negotiations are ongoing. The auto component sector was specifically mentioned in February 2026 reports on India-US trade engagement - battery components and EV parts being specifically highlighted for bilateral cooperation.

Germany - 8% of India's auto component exports Precision components that meet German Tier 1 quality standards. BMW, Mercedes-Benz, Volkswagen, ZF, Bosch, Continental - these companies either source directly from Indian manufacturers or through subsidiaries operating in India. German buyers require exacting quality documentation, and Indian suppliers who have qualified for German OEM supply chains represent the highest certification standard in the industry. H1 FY26 saw Europe's 2.1% decline in auto component imports from India - primarily reflecting sluggish European automotive production and the energy-cost-driven slowdown in European manufacturing.

Turkey - 5% of exports Turkey's automotive manufacturing sector (Fiat, Ford, Renault, Toyota, Hyundai all produce there) creates demand for Indian-origin auto components. Turkish buyers are price-competitive and look for cost-effective Tier 2 supply.

Asia - 26% of exports, 15.1% growth in FY25 The fastest-growing destination region. Japan, South Korea, Thailand, and ASEAN markets. Japanese automakers with Indian operations have been increasing local sourcing - some of this flows back as exports to the parent company's global supply chain.

Latin America Brazil is a growing market for Indian auto components - Brazil's own auto manufacturing base creates aftermarket demand.

The EV Transition: India's $20-30 Billion Opportunity

McKinsey's $70-100 billion FY30 export projection specifically includes Indian SMEs capturing $20-30 billion of the EV component opportunity. That is not a vague aspiration - it is grounded in specific component categories where India can compete.

EV-specific components India is targeting:

Electric motors and e-axle components: India's forging and precision machining capability for mechanical drivetrain parts translates naturally to EV motor housings, rotor shafts, and e-axle assemblies. Sona BLW has explicitly positioned itself as an EV motor component manufacturer with global clients.

Battery enclosures and structural parts: Aluminum die casting and structural welding for battery pack enclosures. India's die casting capacity is significant and already serves ICE fuel system and engine block applications.

Power electronics hardware: EV inverters, converters, and on-board charger assemblies. India's electronics manufacturing capability (strengthened by the broader PLI for electronics) is extending into automotive power electronics.

Charging infrastructure components: India's EV charging infrastructure expanded at 78% CAGR from FY22 to Q3 FY25. Components for charging stations - connectors, cables, control units - are a growing export category alongside domestic supply.

What India is not yet competitive in: Battery cells (still overwhelmingly China-dominated), advanced semiconductor chips for automotive ADAS systems, and rare earth permanent magnets for motors. These gaps explain why H1 FY26 showed imports growing faster than exports - India is importing EV-related electronics and components for domestic assembly.

EV supply to OEMs was 4.6% of total OEM supplies in H1 FY26 (ACMA data), up from 6.7% in FY25 full year (some discrepancy in reporting periods). The EV component share is rising but still modest relative to ICE component volumes.

What Competitor Guides Get Wrong

Three gaps across almost every existing article on Indian auto component exports:

They focus on the total industry number and skip the product breakdown. Knowing India exports $22.9 billion is useful. Knowing that drive transmission is 34% of that, engine components 20%, and electricals 11% - and understanding what each category means for buyers and suppliers - is actually useful. Most competitor articles stop at the headline number.

They ignore the H1 FY26 trade deficit. India flipped from a surplus in H1 FY25 to a deficit in H1 FY26 because imports grew 12.5% against 9.3% export growth. The imports are rising because India is buying EV components. That is the real tension in the sector and it matters enormously for anyone building a long-term export strategy in auto components. Ignoring it produces a rosier picture than the data supports.

They skip the rare earth constraint. ACMA itself flagged "limited availability of rare-earth magnets" as a concern in its FY25 annual review. For India to become a major EV motor component exporter, it needs permanent magnets at competitive cost. Currently, those come from China. This is a supply chain vulnerability that sits directly in the middle of India's EV export ambitions. No competitor article on Indian auto component exports mentions it.

Compliance: What International Buyers Require

IATF 16949 - The International Automotive Task Force quality management standard is the global baseline for automotive component suppliers. Any Indian manufacturer supplying to Tier 1 OEM networks (and most serious exporters do) must be IATF 16949 certified. This is not optional for US or European OEM supply chains. Getting IATF certified requires implementing production process controls, statistical quality methods, and measurement system analysis beyond what ISO 9001 requires.

PPAP (Production Part Approval Process) - Required by US OEMs (GM, Ford, Stellantis, Tesla, and others). A formal process where the supplier proves that the production process will consistently produce parts meeting design specifications. PPAP has five levels; US OEMs typically require Level 3 or 4 submission. Understanding PPAP and having documentation infrastructure to execute it is table stakes for US OEM supply.

VDA 6.3 (Germany) - The VDA (German Association of the Automotive Industry) audit standard for process auditing. German OEMs (BMW, Mercedes-Benz, Volkswagen, Audi) require VDA 6.3 process audits alongside IATF 16949. Indian suppliers targeting German OEM networks need both.

REACH and RoHS (EU) - Chemical substance restrictions apply to auto components sold in the EU. REACH restricts specific hazardous substances; RoHS restricts restricted hazardous substances in electronic equipment including automotive electronics. Suppliers providing electrical/electronic components for EU vehicles must document REACH and RoHS compliance.

TS/IS Certification (India baseline) - Bureau of Indian Standards certification to relevant automotive IS codes is required for domestic automotive supply. For export, it serves as a baseline quality credential.

RoDTEP Rebate for Auto Component Exporters - Auto components fall under RoDTEP (Remission of Duties and Taxes on Exported Products). Rebate percentages vary by product category and HS code. Confirm the specific rebate rate for your product code before pricing export orders.

PLI Scheme for Auto and Auto Components: The PLI scheme for automobiles and auto components was approved with Rs 25,938 crore ($3.03 billion) outlay from FY23 to FY27. It covers:

Advanced Automotive Technology (AAT) components including EV components, hydrogen fuel cell components, and safety systems
Champions OEM Incentive Stream - for established OEMs
Component Champion Incentive Stream - for component manufacturers

Expected to attract Rs 42,500 crore ($4.9 billion) in fresh investment. Indian companies are expected to invest Rs 25,000-30,000 crore in FY26 alone for capacity expansion and EV component localization.

→ ACMA (Automotive Component Manufacturers Association of India) → Invest India Automotive Sector → EEPC India Engineering Export Promotion

How to Start Exporting Auto Components from India

Step 1: IEC from DGFT - Rs 500, online, mandatory.

Step 2: EEPC RCMC - Engineering Export Promotion Council RCMC. Auto components are engineering goods. EEPC membership unlocks MDA grants for trade show participation and buyer-seller meet access.

Step 3: Quality certification - IATF 16949 for OEM supply chain entry. ISO 9001 as minimum for aftermarket supply. The specific standard depends on your target buyer tier.

Step 4: Target market compliance - PPAP documentation capability for US OEMs. VDA 6.3 audit readiness for German OEMs. REACH/RoHS documentation for EU electrical components.

Step 5: HS code confirmation - Auto components primarily fall under HS Chapter 8708 (parts and accessories for motor vehicles). Specific sub-headings: 8708.40 (gear boxes), 8708.50 (drive axles), 8708.70 (wheels), 8708.80 (suspension systems), 8708.92 (radiators), 8708.93 (clutches), 8708.94 (steering wheels). Wrong classification costs money in destination duty payments.

Step 6: ACMA membership - Industry body membership provides export market intelligence, introductions to OEM supply chain contacts, and data access (ACMA's EXIM reports are the most detailed public data on Indian auto component trade).

Step 7: Trade show participation - Bharat Mobility Global Expo (Delhi/Pune, biennial - January 2025 last edition) is India's largest automotive trade show. Automechanika (Frankfurt, biennial; Dubai, annual) is the primary international aftermarket trade show. SEMA (Las Vegas, November) for US aftermarket.

Pre-Export Checklist

IEC from DGFT - active
EEPC RCMC - issued
Quality certification confirmed IATF 16949 or ISO 9001 depending on buyer tier
HS code at 8-digit level confirmed for your specific component
RoDTEP rate confirmed for your product code
PPAP documentation infrastructure in place if targeting US OEM supply chains
VDA 6.3 audit preparedness if targeting German OEMs
REACH/RoHS documentation if exporting electrical components to EU
Drawing and specification documentation in customer format (AIAG or VDA depending on customer OEM)
First article inspection (FAI) report format confirmed with buyer

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The Bottom Line

India's auto component export business is $22.9 billion, growing at 8% annually, and has produced a $453 million trade surplus as of FY25. Drive transmission leads at 34% because India's forging and precision machining capability for driveline parts is genuinely world-class. Engine components at 20% reflects decades of qualified supplier relationships with global OEMs. Electricals and electronics at 11% is the fastest-growing category for a specific reason: EVs require more electronics per vehicle than any ICE equivalent.

The H1 FY26 trade deficit is the honest complication. India's EV component import bill is growing faster than its EV component export capability. The rare earth magnet supply gap is real. The battery cell import dependency is structural. These are not problems the industry is hiding - ACMA flagged them directly in its annual review.

But the McKinsey $70-100 billion FY30 projection is also not a fantasy. India's forging, casting, and precision machining capability translates directly to EV drivetrain components. The wiring harness manufacturers serving ICE vehicles are the same ones who will serve EV electrical architectures. The stamping capacity for ICE body panels is the same capacity that will produce EV battery enclosures.

The transition requires investment and technology collaboration - which is what Rs 25,000-30,000 crore of expected FY26 capex is for. Companies that get the EV transition right will be in a structurally better export position by 2030. Companies that optimize exclusively for ICE component exports will face a shrinking addressable market.

For international buyers, India offers OEM-qualified, cost-competitive supply in drive transmission, engine components, electrical systems, braking, and tyres. For Indian exporters, the compliance investment - IATF 16949, PPAP, VDA 6.3 - is the table stake that separates suppliers who participate in global OEM supply chains from those who remain in the aftermarket tier.

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