NITI Aayog Report Estimates $60B Auto Exports by 2030

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NITI Aayog Launches Report Charting Roadmap to Global Leadership for India’s Automotive Sector

By TRH News Desk

New Delhi, April 11, 2025: With aims to accelerate India’s global integration in the automotive industry, NITI Aayog today launched a comprehensive report titled “Automotive Industry: Powering India’s Participation in Global Value Chains.” The report was unveiled by Suman Bery, Vice Chairman of NITI Aayog, in the presence of Dr. V.K. Saraswat, Dr. Arvind Virmani, and BVR Subrahmanyam, CEO, NITI Aayog.

The report lays out a transformative vision for India’s automotive industry, aiming to raise the country’s share in the global automotive component value chain from 3% to 8% by 2030, and ramp up production to $145 billion.

“With global automobile production reaching 94 million units in 2023 and the automotive components market valued at $2 trillion, India stands as the fourth-largest vehicle producer after China, the US, and Japan,” said the report.

The country’s strengths in small car and utility vehicle exports, backed by initiatives like Make in India, have positioned it as a fast-emerging global manufacturing hub, it added.

The report further stated that “India currently holds only a modest 3% share in global automotive component trade, primarily in engine components and transmission systems”. The report identified low R&D investment, infrastructure gaps, and moderate global value chain (GVC) integration as key bottlenecks.

To address these, NITI Aayog report proposed a robust strategy categorized into fiscal and non-fiscal interventions, with a focus on four types of components based on complexity and manufacturing maturity.

Strategic Interventions to Accelerate Growth

Fiscal Measures:

Opex and Capex Support: To enhance manufacturing infrastructure, tooling, and dies.
Skill Development Programs: To create a robust talent pipeline aligned with industry needs.
R&D & IP Transfer: Government-facilitated innovation, branding incentives, and IP sharing with MSMEs.
Cluster Development: Shared testing and R&D facilities to strengthen the ecosystem.

Non-Fiscal Measures:

Industry 4.0 Integration: Adoption of digital technologies such as AI, IoT, and robotics to modernize production.
Global Collaborations: JVs, FTAs, and foreign tie-ups to expand access to international markets.
Ease of Doing Business: Streamlining regulations and improving supplier networks to make India more business-friendly.

The report underscored that electric vehicles (EVs), along with battery technologies and smart manufacturing, are reshaping the automotive landscape. Countries are investing heavily in battery supply chains and sustainable mobility, creating both challenges and opportunities for India.

“With the rise of connected, autonomous, shared, and electric (CASE) vehicles, India must swiftly adopt next-gen technologies to remain competitive,” added the report.

By 2030, the report envisioned:

$145 billion in automotive component production
$60 billion in exports (up from $20 billion)
$25 billion in trade surplus
2–2.5 million new jobs, raising total employment to 3–4 million
8% share in global automotive value chains

Launching the report, Bery remarked, “India has a generational opportunity to emerge as a global manufacturing leader in the automotive sector. With strategic reforms, targeted investments, and a focus on innovation and competitiveness, we can become a vital player in the global value chain.”

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