India’s Automotive Component Industry: An Overview

Within a relatively short period, India has emerged as a major player in the global industry. The rapid growth has also prompted the entry of dynamic foreign automakers and suppliers, who have raised the bar for their Indian counterparts in terms of quality and pricing

The significance of the automotive industry as a revenue and employment generator has also grown over the years. According to the Society of Indian Automobile Manufacturers (SIAM), a local association of automakers, the turnover of the Indian automotive industry crossed INR3.1trn (USD68.3bn, 31 March 2011) in financial year 2011-12, which translates into more than 6% of India’s gross domestic product (GDP). Presently, the auto industry accounts for around 17% of all indirect tax revenue the government collects each year. In addition, the auto industry provides direct and indirect employment to more than 17 million people in the country.