Imports of Chinese auto components, which used to be quite high till a few years ago, are now seeing their growth rate plateauing. The share of Chinese manufacturers in the domestic auto component industry stood at 28% in the first half of FY25, data shared by the Automotive Components Manufacturers Association (ACMA) showed. In FY24, their share was at 29%.
While India is developing capabilities through private investments in areas such as electric vehicle battery cells, where China has an estimated 70% share of the global EV battery market, there are certain areas which require large investments, said a senior industry executive.
At the H1FY25 industry performance review held last week, Shradha Suri Marwah, president, ACMA, said, “There are certain parts and components which will take time because what is needed is scale and huge investment in technologies. The ball has started rolling now and by 2030 we may be seeing a completely different picture.”
Exports by Indian auto components makers during H1FY25 stood at $11.1 billion, a 7% year-on-year growth, while imports were $11 billion, a 4% y-o-y growth. In FY20 exports were $14.5 billion, while imports were $15.4 billion, as per ACMA data.
“The growth rate of exports is higher than the growth rate of imports, which means the gap is only going to get wider. It was the other way round a couple of years ago,” said Marwah.
Engine components are the largest product-type imported into India presently, with a share of 32%, followed by body and chassis, with 17% share. Drive transmission and steering is the largest product-type exported from India, having a share of 34%, followed by engine components, with a share of 19%.
The slide of China’s share in India’s automotive market comes on the back of repeated vociferous calls by the Indian government for curbing dependence on China and developing local capabilities instead.
ACMA and the Society of Indian Automobile Manufacturers (SIAM) had set a goal to localise 3% of auto component imports within 2-3 years, and an additional 10-15% over the subsequent five years. By 2022, ACMA achieved 6% localisation of imported components worth Rs 120,000 crore.
The Indian government has made it difficult for Chinese owned companies – auto components and vehicle makers – to not only raise capital but also to invest for expansion in India. In the upcoming Bharat Mobility Global Expo, Chinese companies won’t be participating, said ACMA officials.
