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Opportunities and key markets for automobile components export from India

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dhl express employee sorting automotive part packages for exports out of india

India’s automotive industry is quickly growing from domestic manufacturing into an exporter for automobile components. As the global shift toward diversified supply chains accelerates, auto parts exports from India's automotive industry now account for more than 25% of annual production1.

India’s robust manufacturing capabilities, engineering talent, and quality standards are helping automotive component manufacturers secure new international clients and long-term partnerships with auto OEMs in India and abroad.

For businesses looking to export from India, this growth phase presents tremendous potential. This guide explores the opportunities, promising product categories, and top markets for Indian auto component manufacturers.

The export opportunity for auto component manufacturers in India

India’s automotive component industry has entered a transformative era. Once largely domestically focused, it is now achieving significant traction in international markets. According to a Boston Consulting Group industry report, the sector reached USD 74 billion in 2025, with exports hitting a record trade surplus of USD 21 billion in FY242.

Why the global market is turning toward India

The same Boston Consulting Group report also surveyed over 40 Chief Procurement Officers from leading global OEMs and Tier 1 suppliers: 80% are open to expanding their procurement footprint in India3. This confidence stems from India’s4:

  • Cost-competitive manufacturing base: India offers 10-25% lower manufacturing costs than Europe and Latin America.

  • Strong material advantage: As the world’s second-largest steel producer, India ensures a stable and cost-efficient supply of one of the most critical inputs for automobile components.

Automobile components from India with export growth potential

Indian auto spare parts exporters have a wide portfolio of products that are gaining traction globally. Here are some of the types of car parts with the strongest growth potential5:

Axles

With the expansion of global commercial and passenger vehicle production, demand for axles, which connect the wheels and support the vehicle’s load, is steadily increasing. Lightweight yet durable designs are particularly sought after, an area which auto component manufacturers in India can look to explore. 

Brakes and components

As safety regulations become stricter worldwide, the need for high-quality brake pads, discs, drums, and calipers continues to grow. This segment offers strong potential for Indian firms that can meet international safety standards while maintaining competitive pricing and reliable delivery timelines.

Engine components

Global demand for pistons, crankshafts, cylinder heads, and valves remains strong, especially as developing markets continue to produce vehicles powered by internal combustion engines. For auto component manufacturers in India, this category offers opportunities to supply precision-engineered parts to OEMs and Tier 1 suppliers seeking cost-effective, high-quality alternatives.

Wiring harnesses

With the surge in electric and hybrid vehicle manufacturing, wiring harnesses have become one of the fastest-growing categories in the global auto parts export market. Auto component manufacturers in India that invest in advanced electrical assembly capabilities can tap into this rising demand from EV manufacturers and global supply chains looking to diversify sourcing.

Gears and gearbox parts

As vehicle electrification and automation evolve, gears and gearbox components are being redesigned for better efficiency and performance. This shift opens a strong export opportunity for Indian automotive component manufacturers with expertise in precision machining and scalable production.

By targeting these high-potential components, Indian exporters can capture emerging opportunities in the global B2B automotive supply chain and strengthen India’s position as a trusted sourcing destination.

Where to export made-in-India automobile components

Finding success in the auto parts export sector depends on identifying the right international markets. Here’s a look at the key destinations for auto parts export from India6:

North America and Europe

North America and Europe remain the largest and most mature destinations for automobile components from India. These regions are home to established automotive ecosystems and leading auto OEMs that are constantly seeking cost-effective yet high-quality suppliers.

Indian exporters have strong potential to meet this demand by auto parts that comply with international quality and performance standards. With supply chain diversification becoming top priorities, more OEMs in these markets are actively looking toward India for long-term sourcing partnerships.

Growing Asian markets

Asia offers fast-growing opportunities for automotive component manufacturers in India. Countries like Japan, South Korea, Thailand, and Indonesia have thriving automotive industries with close proximity to India. 

Indian exporters can benefit from this proximity by offering competitive pricing, shorter delivery timelines, and consistent quality assurance for their car parts export.

Middle East and Africa

The Middle East and Africa represent expanding frontiers for auto spare parts exporters in India. Qatar in particular is emerging as the fastest-growing market for automobile components with a projected CAGR of 5.8% from 2025 to 20337. Similarly, South Africa is expected to grow at a CAGR of 4.6% over the same period8.

Latin America

Latin America is an emerging growth region for Indian auto component exporters. According to Cognitive Market Research, the South America automotive components market is set to rise from USD 125.5 billion to USD 186.4 billion by 2033, growing at a 3.4% CAGR9.

Brazil, Argentina, and Colombia lead the region, with markets expected to reach USD 77.1 billion, USD 32.4 billion, and USD 30.4 billion respectively.

With demand driven by large vehicle bases and expanding aftermarkets, Indian manufacturers that offer cost-efficient, high-quality parts can strengthen their footprint across Latin America’s supply chains.

How an international logistics partner can help your automobile component exports

As auto component manufacturers in India gear up to serve international markets, logistics becomes a key competitive differentiator. Exporting high-value automobile components requires precision, timeliness, and regulatory compliance. This is where partnering with an experienced international courier like DHL Express can support you in the following ways:

1. Just-in-Time (JIT) manufacturing support

The global automotive industry operates on just in time manufacturing principles to minimise inventory and improve efficiency. DHL Express’ international logistics services ensure your shipments of automobile components arrive exactly when needed so you can:

  • Prevent costly production delays and line stoppages.
  • Synchronise with OEM and Tier 1 supplier schedules.
  • Enable seamless integration into international production chains.

2. Specialized Handling and Customs Expertise

Auto parts export often involves complex, high-value, or sensitive shipments, from precision-engineered engine components to electronic wiring harnesses. DHL Express provides:

  • End-to-end customs clearance support for international shipping from India.
  • Expertise in managing export documentation, including certificates of origin, packing lists, and HS codes.
  • Secure and temperature-controlled handling for sensitive or hazardous goods.

3. Enhanced supply chain resilience

Building a resilient supply chain is now a strategic advantage for exporters. DHL Express’ vast international courier network helps you:

  • Diversify logistics routes across continents.
  • Reduce dependency on single ports or carriers.
  • Get real-time shipment tracking for better visibility and operational control.

A trusted international logistics services provider like DHL Express enables automotive component manufacturers to stay agile in a fast-evolving market, maintaining delivery reliability even during disruptions.

Powering India’s global automotive future

smiling dhl express employee standing for a photo

The Indian automobile spare parts industry is no longer just a domestic growth story. As international demand surges, Indian auto spare parts exporters have the opportunity to redefine global supply chains through quality, reliability, and innovation.

By focusing on high-demand automobile components, expanding to high-growth markets, and partnering with an international courier like DHL Express, auto component manufacturers in India can confidently position themselves as key contributors to the world’s automotive transformation.

Ready to take your automotive exports global? Create a DHL Express business account today and unlock seamless international shipping from India for your next export shipment.

Frequently asked questions about auto parts export from India

India exports a wide range of automobile components, including axles, brakes, engine parts, wiring harnesses, gears, and gearbox components. These products are in high demand globally due to India’s strong engineering capabilities, cost competitiveness, and adherence to international quality standards.

According to OEC World, petroleum products top India’s export list at USD 4.45 billion, followed by drug formulations and biologicals (USD 1.99 billion), telecom instruments (USD 1.79 billion), precious and semi-precious stones (USD 1.19 billion), and electrical machinery and equipment (USD 1.15 billion)10.

While petroleum remains India’s largest export, automobiles and auto components continue to be among the country’s most promising and value-added sectors, supported by rising global demand and expanding manufacturing capacity.

The Indian auto parts market is projected to grow from USD 67.4 billion in 2024 to USD 115.5 billion by 203511, reflecting a strong upward trajectory. This growth underscores India’s position as a key player in the global automotive supply chain and a reliable sourcing hub for international buyers.