India’s AUD 145 Billion Auto Components Opportunity – What Australian Businesses Need to Know

India’s Automotive Component Manufacturers Association (ACMA) has set a target of AUD 145 billion in auto component exports by FY2030 – up from AUD 33.2 billion in FY2025 (ACMA). This ambitious growth target is underpinned by three structural drivers.

Driver 1: Global Supply Chain Realignment

The automotive industry’s diversification away from China-concentrated supply chains is creating a historic window for Indian component manufacturers. India’s tier-1 suppliers already serve BMW, Ford, Mercedes-Benz, Hyundai, and GM globally – providing the quality and delivery certifications that Australian procurement teams require.

Driver 2: The EV Transition

India’s EV sales crossed 2.3 million units in 2025, with market share reaching 8%. The government’s PLI scheme for Advanced Chemistry Cell (ACC) batteries and PM E-DRIVE programme (successor to FAME-II, launched September 2024) are accelerating domestic EV component manufacturing.

For Australian companies with battery chemistry expertise, EV testing technology, or critical mineral processing capability – India’s EV ramp-up represents both a licensing opportunity and a rapidly growing end market.

Driver 3: Scale Advantages in Precision Manufacturing

India’s combination of engineering talent, competitive labour costs, and OEM-certified manufacturing creates cost structures that Australian aftermarket distributors find increasingly attractive for sourcing precision components.

What Australian Businesses Should Do Now

Companies that establish distributor relationships, OEM partnerships, or technology licensing agreements before the AUD 145 billion export wave consolidates will have preferred-partner status that later entrants cannot easily replicate. The first step is a structured market assessment.

Sources: ACMA (acma.in); DDNews India 2025; Tractus Asia 2024; McKinsey Global Institute