India is building the auto world’s Plan B to China

Mumbai: Indian automotive component manufacturers are rapidly expanding their global manufacturing footprint to capitalize on shifting sourcing strategies among major auto manufacturers. This shift is driven by trade uncertainties, unpredictable tariffs, and supply chain disruptions that have made single-country production hubs less attractive.

Leading Indian suppliers such as Suprajit Engineering, Highway Roop Precision Technologies, SPR Auto Technologies, and Tenneco are taking advantage of this trend by establishing manufacturing facilities in multiple countries, including India, China, Mexico, Hungary, and Morocco. According to Ajit Rai, chief strategy officer at Suprajit Engineering, this strategy allows OEMs to develop products in one location and supply from multiple sites, providing greater supply chain flexibility.

The trend is being fueled by a joint BCG-ACMA report that projects India's auto parts exports to reach $45 billion by 2030, up from $24 billion in FY26. Currently, India contributes less than 5% of global auto parts trade, compared to China's 12%, but Indian suppliers are quickly narrowing the gap by reaching global standards in product technology.

Tenneco CEO Arvind Chandra notes that technological equalisation has made India-engineered parts now comparable to European products in terms of technology. This has led to strong demand from European automakers looking to diversify their supply lines away from China.

Indian suppliers are also taking on greater design responsibilities to strengthen global partnerships. Highway Roop, for example, is transitioning from build-to-print manufacturing to proprietary product design and sub-assemblies, with 55% of its ₹2,500 crore annual revenue now coming from exports. Similarly, SPR Auto is expanding its sub-assemblies and powertrain offerings, including hybrid, hydrogen, CNG, and electric platforms, while reducing its legacy internal combustion engine business to under 35% of revenue.

By offering multi-country manufacturing flexibility alongside full-service design capabilities, Indian companies are positioning themselves as strategic partners in the restructured global automotive supply chain, rather than simply low-cost alternatives to China.