Auto component industry groups say they see opportunities in technology partnerships and increased exports of auto components, which make up a significant portion of India's annual merchandise exports, as the two countries finalize the terms of a free trade agreement after three years of negotiations. Even while the UK's exports are still high, observers say the country's faltering auto industry is still a cause for concern.
"This historic agreement is a major step toward strengthening economic links between the two countries and ushers in a new age of bilateral trade and investment.""With this historic agreement, the Indian auto component industry looks forward to increased collaboration, technology partnerships, and market access," said Shradha Suri Marwah, president of the Automotive Component Manufacturers Association of India (ACMA) and chairperson and managing director of auto parts manufacturer Subros.
In FY24, India exported 21.2 billion USD worth of car parts globally, with the UK making up 3 percent of total exports, according to ACMA data. In the first half of FY25, India exported auto parts valued at approximately 11.1 billion USD, an increase of 7 percent over the same period the year before. About 3 percent of that went to the UK, based on the data. The United States is by far the biggest market for Indian auto component exports.
Due to Tata Motors' ownership of luxury automaker Jaguar Land Rover, India has an indirect presence in the UK auto industry. Other well-known UK brands include Vauxhall, which is owned by Stellantis, Mini, and Aston Martin.
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