The Indian auto component industry is expected to almost double to US $17.5 billion by 2009 and reach about US $39 billion by 2014. Its globally competitive auto component manufacturing sector has been much in demand with global auto majors. A number of them source critical components from India, with engine parts making up nearly a third of all exports:

• Engine parts (31 per cent)
• Drive transmission and steering parts (19 per cent)
• Body and chassis (12 per cent)
• Suspension and braking parts (12 per cent)
• Equipment (10 per cent)
• Electrical parts (9 per cent)
• Others (7 per cent)

Steered here by the country's high engineering skills, established production lines, a thriving domestic automobile industry and competitive costs, global auto majors are rapidly ramping up the value of components they source from India. The industry is poised to jump from exports of US $2 billion in 2004-05 to US $6.5 billion in 2008-09. According to the Automotive Component Manufacturers Association of India, more than a third (37 per cent) of Indian auto component exports head for Europe, with North America a close second at 24 per cent.

The industry has been exporting around 15% of its output and growing at the rate of 26%. In the year 2005-06, industry has exported US $1.9 billion versus US $1.5 billion in year 2004-2005. Principal export items include replacement parts, tractor parts, motorcycle parts, piston rings, gaskets, engine valves, fuel pump nozzles, fuel injection parts, filter & filter elements, radiators, gears, leaf springs, brake assemblies & bearings, clutch facings, head lamps, auto bulbs & halogen bulbs, spark plugs and body parts.

The auto components industry in India is dominated by around 460 key players, which add up to more than 85 per cent of India's production. Some of the largest, like Motherson Sumi, Sona Koyo Steering Systems, Rico Auto Industries, Bharat Forge, Amtek and Mahindra & Mahindra are scaling up from producing individual components to making assemblies and systems, as automobile makers seek to manage fewer vendors and trim costs.