India’s auto components industry is at a pivotal juncture, marked by significant policy support, ambitious export targets, and a focus on electric vehicle (EV) adoption. In a recent address, Commerce Minister Piyush Goyal outlined the sector’s strengths and priorities, emphasizing resilience, international collaboration, and innovation.

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Key Developments in the Auto Components Sector

1. Support for Free Trade Agreements (FTAs):
   • Minister Goyal highlighted the sector’s readiness to embrace concessions under FTAs to access global markets.
   • India’s trade agreement with the European Free Trade Association (EFTA)—comprising Iceland, Liechtenstein, Norway, and Switzerland—signed in March 2024, is expected to unlock opportunities for investment and job creation.
2. Collaboration and Investments:
   • Domestic automobile companies were encouraged to collaborate with EFTA countries, particularly Switzerland, for advanced machinery and equipment.
   • EFTA-based companies are projected to invest $100 billion in India, creating approximately 1 million jobs over the next 15 years.
3. Ambitious Export Targets:
   • The industry is tasked with increasing exports from the current $20 billion to an ambitious $100 billion by 2034, signaling a push toward global competitiveness.
4. Transition to Electric Vehicles (EVs):
   • Goyal urged the industry to prepare a five-year roadmap for EV adoption, focusing on two- and three-wheelers, which are expected to transition faster than four-wheelers.
   • He also emphasized consumer awareness about EV benefits, encouraging them to choose electric options for new purchases.
5. Caution Against Import Reliance:
   • The minister warned against heavy dependence on imports from countries with opaque economic practices. Indian companies relying on imports may face competitive challenges in the long term.

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Table: India’s Auto Components Industry Key Data

Parameter	Highlights	Figures/Details
FTAs and Global Access	Concessions under FTAs to access international markets	–
EFTA Trade Agreement	Signed with Iceland, Liechtenstein, Norway, and Switzerland	March 2024
Investment from EFTA	Projected investment from EFTA countries over 15 years	$100 billion
Job Creation	Jobs to be created due to EFTA investments	1 million
Export Target	Increase auto component exports from $20 billion to $100 billion over 10 years	2024–2034
EV Transition	Five-year roadmap for EV adoption, starting with two- and three-wheelers	Focus on faster segments
Import Dependency	Caution against reliance on imports from countries with non-transparent practices	–
Future EV Trends	Rapid shift expected in two- and three-wheelers, slower transition in four-wheelers	Consumer encouragement advised

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Future Outlook

India’s auto components industry stands at the threshold of transformative growth. Strategic international collaborations, policy-driven export expansion, and a structured transition to EVs position the sector as a global leader. However, caution against import reliance and the need for robust domestic capabilities remain critical to long-term success.

This roadmap, aligned with Minister Goyal’s vision, reflects a future-ready industry poised to drive innovation, sustainability, and global integration.