India's auto components industry is projected by Goldman Sachs to grow at a 10% annual rate through FY30.

According to a Goldman Sachs report, India's auto components industry is undergoing a structural shift by expanding beyond traditional automotive manufacturing into high-growth sectors like electric vehicles, semiconductors, aerospace, and defense. Driven by global efforts to diversify supply chains and supported by competitive labor costs and advanced precision engineering, the industry's revenue is projected to grow at a 10% CAGR from FY26 to FY30, reaching ₹11.87 lakh crore ($124.40 billion). Meanwhile, earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to expand at an even faster 15% CAGR over the same period. Key catalysts fueling this multi-year expansion include accelerating electrification, expanding export volumes, the implementation of the Eighth Pay Commission, and a global transition in traditional engine manufacturing. By stepping into high-value precision machining and consumer electronics, Indian component makers are steadily integrating into resilient global supply networks. Ultimately, this strategic diversification is set to fortify India’s domestic manufacturing base, attract vital investments, and elevate the nation's status as an advanced global hub for engineering and auto components.