Blitz Bureau
NEW DELHI: India’s auto component industry is likely to grow at a compound annual growth rate of about 10 per cent through fiscal 2030, a new report has said.
The US investment bank Goldman Sachs said in the report that the sector is expected to see revenue rising to $124.4 billion by FY30 from an estimated $85.6 billion in FY26.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) is expected to expand faster, at 15 per cent CAGR over the same period.
The investment bank said many manufacturers are reshaping their product mix and using existing capabilities to maximise profits as India’s auto sector enters a “transformation journey”.
Global efforts to de‑risk supply chains are drawing semiconductor, automotive and industrial buyers to India creating opportunities for Indian precision-machining companies across semiconductor wafer-fabrication equipment, electric vehicle components, aerospace, defence and data centre power generation.
The brokerage said the current perception of these companies—largely as cyclical auto component manufacturers with limited pricing power and recurring capital expenditure requirements—fails to fully capture their expanding addressable markets.
Growth from FY26-FY30 is expected to be driven by electrification, the upcoming Eighth Pay Commission, exports, the global shift of legacy internal combustion engine (ICE) component manufacturing to India and diversification into defence, consumer durables, electronics, semiconductors and aerospace.
Further, Indian manufacturers are poised to benefit from lower labour costs, competitiveness in legacy ICE products and the relatively slower pace of domestic electrification, the report said.
