July 24, 2026 at 03:04 AM 2 min readauto
India Auto Parts Industry Projected to Grow 10% Annually Through FY30
Manufacturers plan ₹70,300 crore in expansion investments to tap into electric vehicles, defense, and semiconductor supply chains.
Strong Revenue Projections Across Sectors:
India's precision machining and auto parts industry is projected to achieve a 10% annual revenue growth rate between FY26 and FY30, according to a report published by Goldman Sachs. The sector is scaling rapidly by diversifying into high-growth technology and infrastructure verticals.
Diversification into Tech and Infrastructure:
The Goldman Sachs report highlights that component makers are expanding into semiconductors, defense, aerospace, electric vehicles, and data centers. Furthermore, industry EBITDA is forecasted to expand at a 15% compound annual growth rate during the same five-year timeframe.
Multi-Billion Rupee Capital Expenditure Plans:
Indian auto component manufacturers are preparing capital investments totaling ₹70,300 crore for expansion projects through FY29. These capital outlays are directed toward developing dedicated electric vehicle platforms, localized battery technologies, and advanced manufacturing capabilities.
Pulse Intelligence
Context & ImpactContext & Background
- Indian auto component suppliers historically depended on traditional internal combustion engine passenger and commercial vehicle manufacturing contracts.
- Global supply chain reconfigurations prompted international firms to source high-precision machined parts from Indian suppliers.
Key Consequences
- Domestic component makers will increase capital expenditure outlays for advanced machining equipment by early 2027.
- Employment in specialized engineering and precision manufacturing roles will expand across major industrial clusters.
Market & Economic Impact
Not applicable.
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