The cumulative growth rate of the Indian Auto Component Inc. over the last five years has reached 4.1 percent, with the rate of growth in exports (5.7%) being double that of imports, thereby helping to reduce the trade deficit, which was pegged at US$ 2.5 billion in FY19.

However, with the aggressive push of global automakers to de-risk their supplies and look for alternative sourcing destinations beyond China, colloquially known as the industry's 'China+1' strategy, India is gaining strong momentum in witnessing a heightened interest in demand for Made-in-India components, and as a result, is poised to become the world's automotive component manufacturing hub.

Addressing the media at the announcement of the automotive component industry's FY23 results, Sunjay Kapur, President, ACMA, said, "The industry has had a great year, and with domestic sales in Europe and the US growing by 3 and 8 percent, respectively, there has been little impact of the looming recession in these regions, therefore driving the exports of components from India.

"The 'China+1' de-risking strategy of OEMs augurs well for the country to become a global manufacturing hub for automotive components. The technology implementation in manufacturing in terms of automation, and Industry 4.0 solutions will strengthen the industry from catering to the demand for the global markets," he said.

The FY23 exports turnover of India Auto Components Inc was estimated to be US$ 20.1 billion, up from US$ 19.1 billion the previous year. While the United States and the European Union continued to be the top destinations for Indian component exports, with roughly a 32 percent share each, robust growth of 27 percent was also seen in component exports to Latin America. Indian auto components Inc exports drive and gearbox, steering and engine components, among other things.

"The industry has had a great year, and with domestic sales in Europe and the United States increasing by 3 and 8%, respectively, there has been little impact of the looming recession in these regions, driving component exports from India," Kapur said.