Industry guide
Auto Components Export Guide for Indian Manufacturers
Everything Indian auto component exporters need to know. Type approvals, OEM qualification, HS code classification, destination market duties, PLI incentives, FTA benefits, and the emerging EV component opportunity.
By Aaryan Kakani · · 9 min read
Industry Overview
India's auto component industry is a $21.2 billion export sector and one of the fastest-growing segments of Indian merchandise exports. The country is the world's third-largest automotive market by volume, and its component ecosystem supplies parts to nearly every major global OEM. From Toyota and Volkswagen to General Motors and Ford. The sector employs over 5 million people and accounts for roughly 2.3% of India's GDP.
Key Subsectors
Auto component exports span a wide range of product categories, each with distinct compliance requirements, certification needs, and market dynamics:
| Subsector | Key Products | Export Share |
|---|---|---|
| Engine Parts | Pistons, cylinder liners, crankshafts, camshafts, valves, gaskets | ~25% |
| Drive Transmission | Gears, axles, clutches, drive shafts, CV joints, differential assemblies | ~18% |
| Suspension & Braking | Brake pads, brake discs, shock absorbers, leaf springs, stabiliser bars | ~15% |
| Electrical Components | Wiring harnesses, alternators, starters, sensors, ECUs, lighting assemblies | ~16% |
| Body Parts & Structural | Bumpers, fenders, doors, stampings, sheet metal assemblies, mirrors | ~10% |
| Rubber & Plastic Parts | Seals, hoses, bushings, moulded plastic parts, interior trim, weatherstrips | ~10% |
| EV Components | Battery packs, electric motors, controllers, BMS, charging equipment | ~6% |
Major Manufacturing Hubs
- Chennai & Tamil Nadu. India's largest auto cluster. Hyundai, Renault-Nissan, Daimler, BMW suppliers. Engine parts, drive transmission, EV components.
- Pune & Maharashtra. Tata Motors, Bajaj, Force Motors ecosystem. Castings, forgings, machined components, braking systems.
- NCR (Gurugram-Manesar-Greater Noida). Maruti Suzuki ecosystem. Sheet metal stampings, plastic mouldings, wiring harnesses.
- Ahmedabad & Gujarat. Growing rapidly with Suzuki Gujarat. Castings, auto ancillaries, rubber parts.
- Bangalore & Karnataka. Toyota Kirloskar ecosystem. Precision components, electronics, testing facilities.
HS Code 87 Coverage
Auto components fall primarily under HS Chapter 87 (vehicles other than railway, and parts thereof). Correct classification determines import duty rates, FTA eligibility, and anti-dumping exposure.
| HS Code | Description | Examples |
|---|---|---|
| 8407 | Spark-ignition engines | Petrol engines, outboard motors |
| 8408 | Compression-ignition engines | Diesel engines for vehicles |
| 8409 | Engine parts | Pistons, cylinders, cylinder heads, valves |
| 8483 | Transmission shafts & gears | Crankshafts, camshafts, gear boxes, flywheels |
| 8507 | Electric accumulators | Lead-acid batteries, lithium-ion battery packs |
| 8511 | Electrical ignition equipment | Spark plugs, ignition coils, starters, alternators |
| 8512 | Lighting & signalling equipment | Headlamps, tail lamps, indicators, fog lamps |
| 8708 | Parts & accessories of motor vehicles | Bumpers, brakes, gearboxes, axles, wheels, body panels, suspension |
| 8714 | Parts for motorcycles & cycles | Two-wheeler frames, forks, wheel rims |
| 4011/4012 | Tyres (new & retreaded) | Pneumatic tyres for cars, buses, trucks |
HS 8708 is the most commonly used classification for auto parts and accessories, but it is also the most frequently misclassified. Many components that seem like "vehicle parts" actually belong under their functional heading. For example, ball bearings under 8482, rubber gaskets under 4016, safety glass under 7007, and electric motors under 8501. The correct classification determines not just the duty rate but also eligibility for FTA concessions and exposure to anti-dumping duties.
Key Destination Markets & Duties
Indian auto components reach over 160 countries. Here are the top markets with their duty structures and compliance requirements:
United States. The largest single-country destination. Import duties are 2.5% on passenger car parts, 4% on truck parts, with the 25% "chicken tax" on pickup trucks and certain assemblies. Tyres 3. 4%, glass 3. 5%, rubber parts 2.5%, electrical 0. 3.4%. No FTA with India; MFN rates apply. Requires DOT/FMVSS compliance for safety parts and EPA standards for emissions components.
European Union. MFN duties of 0. 6.5% on auto components, most HS 8708 parts at 3. 4.5%. ECE type approval mandatory for safety and emissions parts. The EU's CBAM does not directly cover auto components but affects steel/aluminium inputs.
Turkey. Carries anti-dumping risk . Turkey has imposed anti-dumping duties on specific Indian auto component categories including steel wheels and brake discs. Base MFN duties 0. 4.5%.
United Kingdom. UK Global Tariff MFN rates of 0. 6.5% , broadly aligned with EU. India-UK CETA changed the preferential position during 2026. Confirm the rate and the origin paperwork that applies to your HS line before you quote MFN. UKCA marking replacing CE marking with transition period.
Thailand & ASEAN. Thailand MFN rates 5. 30%, making FTA utilisation critical. India-Thailand Early Harvest Scheme and India-ASEAN FTA offer reduced/zero duties.
| Market | MFN Duty Range | FTA Available | Key Compliance |
|---|---|---|---|
| USA | 0. 6% (25% trucks) | No | DOT/FMVSS, EPA |
| EU | 0. 6.5% | No | ECE type approval, REACH |
| Turkey | 0. 4.5% | No | Anti-dumping risk, ECE |
| UK | 0. 6.5% (MFN) | India-UK CETA. Verify current rate | UKCA/CE marking |
| Thailand | 5. 30% | India-ASEAN FTA, EHS | TISI standards |
| Japan | 0. 5% | India-Japan CEPA | JIS/JASIC marks |
| Australia | 0. 5% | India-Australia ECTA | ADR compliance |
Type Approvals & Certifications
Auto components are among the most regulated export products. Safety-critical parts (brakes, lighting, tyres, steering, glazing, mirrors) require formal type approval before sale in the destination market.
| Certification | Market | Scope | Notes |
|---|---|---|---|
| IATF 16949 | Global | Automotive quality management system | Baseline for all OEM suppliers. Replaces ISO/TS 16949. Certified by IATF-recognised bodies. |
| ECE Type Approval | EU, UK, Turkey, Russia, Japan | Safety-critical components | UNECE regulations (R13 braking, R7 lighting, R43 glazing). "E" mark with country code. |
| DOT / FMVSS | USA | Motor vehicle safety components | Self-certification by manufacturer to FMVSS standards. NHTSA enforcement and recall authority. |
| ADR | Australia | Australian Design Rules compliance | Largely harmonised with UNECE standards. Some Australia-specific requirements. |
| CMVR | India | Central Motor Vehicles Rules | Required for domestic sale and establishing compliance track record for exports. |
| JIS / JASIC | Japan | Japanese Industrial Standards | Japan Automobile Standards Internationalisation Centre. Recognised under India-Japan CEPA. |
Aftermarket vs OEM Exports
The compliance path differs significantly between OEM (Original Equipment) supply and aftermarket replacement parts.
OEM Supplier Qualification
Becoming an approved OEM supplier follows the APQP (Advanced Product Quality Planning) framework:
- RFQ response & technical review. Capability assessment, pricing, quality documentation.
- APQP Phase 1. 2. Design FMEA, process flow, control plan. Typically 3. 6 months.
- Tooling & prototyping. Production tooling investment, sample runs.
- PPAP submission. Dimensional reports, material certificates, capability studies (Cpk ≥ 1.67), run-at-rate trial.
- SPC & MSA. Ongoing Statistical Process Control and Measurement System Analysis.
- SOP & ramp-up. Start of production with JIT/JIS delivery scheduling.
Aftermarket Exports
Aftermarket offers higher margins (25. 40% vs 8. 15% OEM) with different requirements:
- Packaging & labelling. Country-of-origin, fitment details, safety warnings, barcode/EAN.
- Safety-critical parts. Brake pads, lighting, tyres still need type approval (ECE/DOT).
- Catalogue compatibility. OE part number cross-referencing, TecDoc integration.
- Warranty. Minimum 12. 24 month coverage with clear claims process.
EV Component Opportunity
The global EV transition is creating a massive new export category. While traditional ICE components will see gradual volume declines, EV components represent high-growth opportunity. The global EV parts market is projected to exceed $200 billion by 2030.
Key EV Component Categories
- Battery packs & modules. Lithium-ion cell modules, pack assembly, thermal management systems, battery enclosures.
- Electric motors. Permanent magnet synchronous motors (PMSM), induction motors, motor controllers.
- Battery Management Systems (BMS). Cell balancing, state-of-charge monitoring, thermal monitoring, safety shutdown.
- Power electronics. Inverters, DC-DC converters, on-board chargers, motor controllers.
- Charging equipment. AC chargers, DC fast chargers, charging cables, connectors (CCS2, CHAdeMO, Type 2).
- Thermal management. Battery cooling systems, heat pumps, thermal interface materials, coolant pumps.
EV-Specific Standards
| Standard | Scope | Applicability |
|---|---|---|
| ISO 6469 | EV safety. Electrical, battery, personal protection | Global OEMs |
| AIS 038 | Indian type approval for electric vehicles | India domestic |
| UN R100 | Battery safety. Vibration, thermal shock, overcharge, short circuit | EU, UK, Japan |
| UN R136 | EV and hybrid safety requirements | EU, UK |
| UL 2580 | Batteries for use in EVs (US standard) | USA |
PLI Scheme for Auto Components
The Production Linked Incentive (PLI) scheme for the Automobile and Auto Component Industry has an outlay of INR 25,938 crore. It incentivises Advanced Automotive Technology (AAT) component manufacturing, with export sales counting toward incentive thresholds.
| Category | Min Investment | Incentive | Duration |
|---|---|---|---|
| Champion OEM | INR 2,000 Cr | 4. 6% incremental sales | 5 years |
| Component Champion (New) | INR 50 Cr | 4. 5% incremental sales | 5 years |
| Component Champion (Existing) | INR 10 Cr | 4. 5% incremental sales | 5 years |
Eligible components: EV parts (battery packs, motors, controllers, BMS), hydrogen fuel cell components, adaptive front lighting, automatic transmission assemblies, electronic power steering, ADAS components, lightweight materials (aluminium, carbon fibre), and CNG/LNG fuel systems.
ACMA Membership
The Automotive Component Manufacturers Association of India (ACMA) represents over 800 member companies accounting for 85%+ of industry turnover. While not legally required, membership provides significant export advantages:
- International exhibitions. Subsidised participation in Automechanika, AAPEX, Equip Auto.
- Buyer-seller meets. Direct access to global OEM procurement teams.
- Market intelligence. Duty structure updates, regulatory change tracking, competitor analysis.
- Anti-dumping defence. Legal and data support in trade remedy cases.
- Technology partnerships. Facilitated JV and technology tie-up opportunities.
ACMA's Quality and Productivity Award programme evaluates manufacturing excellence across quality management, delivery performance, cost competitiveness, and sustainability. An ACMA certification adds credibility to export bids and is recognised by many global OEMs.
FTA Benefits for Auto Components
India's FTA network offers significant duty savings, but benefits are not automatic. You must claim them through proper Certificate of Origin documentation and meet Rules of Origin requirements.
| FTA | Partner | Duty Benefit (HS 8708) | RoO Threshold |
|---|---|---|---|
| India-Japan CEPA | Japan | 0% (from 0. 5% MFN) | 40% DVA |
| India-Korea CEPA | South Korea | Reduced rates (varies by line) | 35% DVA |
| India-ASEAN FTA | 10 ASEAN nations | 0. 5% (phased reduction) | 35% RVC |
| India-Thailand EHS | Thailand | 0% on covered lines | 40% DVA |
| India-Australia ECTA | Australia | 0% (phased elimination) | 35% QVC |
DVA = Domestic Value Addition. RVC = Regional Value Content. QVC = Qualifying Value Content. For auto components using imported steel or aluminium, carefully calculate whether your value addition meets the threshold.
Export Incentives
Indian auto component exporters can access multiple government incentive schemes that directly improve cost competitiveness. These schemes are not mutually exclusive. They can be combined for maximum benefit.
RoDTEP. Refunds embedded duties and taxes not covered by other mechanisms. Auto component rates typically 0.5. 2% of FOB value, issued as transferable duty credit scrips.
Duty Drawback. Product-specific refund rates on customs and excise duties paid on imported inputs. All Industry Rates published annually; brand rates based on actual duty incidence may provide higher refunds.
[EPCG Scheme](/resources/epcg-scheme). Zero-duty import of capital goods (CNC machines, testing equipment, assembly lines) against export obligation of 6x duty saved over 6 years. Saves 5. 15% on capital equipment costs.
[Advance Authorisation](/resources/advance-authorisation). Duty-free import of raw materials (steel, aluminium, rubber, plastics) for export production. Can save 5. 20% on input costs for high imported-material-content products.
Quality Standards
Beyond the type approvals covered in Section 4, auto component exporters need to maintain a portfolio of quality and management system certifications. These serve as both buyer requirements and competitive differentiators when bidding for new OEM programmes.
| Standard | Purpose | Required By |
|---|---|---|
| IATF 16949 | Automotive quality management system | All global OEMs |
| ISO 9001 | General quality management | Aftermarket, Tier 2/3 |
| ISO 14001 | Environmental management system | EU OEMs, increasingly all |
| ISO 45001 | Occupational health & safety (replaces OHSAS 18001) | European OEMs, Tier 1s |
| ISO 17025 | Testing and calibration lab competence | In-house labs testing exported parts |
| REACH/RoHS | Substance restrictions (EU) | EU market access |
| IMDS | International Material Data System. Material composition reporting | All global OEMs |
IMDS compliance deserves special mention. All OEM suppliers must declare complete material composition in the International Material Data System, enabling restricted substance tracking (REACH, ELV Directive, POPs Regulation) and end-of-life vehicle recycling. IMDS reporting is mandatory for OEM supply and increasingly requested in aftermarket channels.
Export Compliance Checklist
Use this checklist to ensure your auto component exports are fully compliant:
- IEC (Importer-Exporter Code) registration with DGFT
- RCMC from EEPC India or ACMA
- IATF 16949 (OEM supply) or ISO 9001 (aftermarket)
- ISO 14001 environmental management certification
- ISO 45001 occupational health and safety certification
- Market-specific type approval (ECE, DOT/FMVSS, ADR, JIS as applicable)
- HS code classification verified at 8-digit level for each product
- FTA eligibility assessed and Certificate of Origin process established
- RoDTEP and Duty Drawback registration completed
- EPCG/Advance Authorisation obtained for capital goods and raw material imports
- REACH/RoHS substance compliance verified for EU-bound shipments
- IMDS material data sheets uploaded for OEM supply
- Product labelling compliant with destination market requirements
- Packaging standards met (VDA 4500 for German OEMs, AIAG for North American OEMs)
- Export documentation. Commercial invoice, packing list, shipping bill, CoO, test certificates
- Insurance and Incoterms agreed (typically CIF/DDP for OEM, FOB for aftermarket)
- PLI scheme eligibility reviewed and application submitted if applicable
Frequently Asked Questions
What certifications do I need to export auto parts from India?
The core certification is IATF 16949 (automotive QMS), required by virtually all OEM buyers. Beyond that, you need market-specific type approvals: ECE for Europe, DOT/FMVSS for the USA, ADR for Australia, JIS/JASIC for Japan. Safety-critical components face the strictest requirements. ISO 14001 and ISO 45001 are increasingly expected as supplier prerequisites.
What is the import duty on Indian auto parts in the USA?
Passenger car parts attract 2.5%, truck parts 4%. Tyres 3. 4%, rubber parts 2.5%, glass 3. 5%, electrical 0. 3.4%. The 25% "chicken tax" applies to pickup trucks and large assemblies. No FTA with India. MFN rates apply.
How does the PLI scheme benefit auto component exporters?
The PLI scheme offers 4. 6% incentive on incremental sales over five years for AAT components including EV parts, ADAS, and advanced transmissions. Min investment starts at INR 10 crore for existing manufacturers. Export sales count toward the incentive threshold.
What is the difference between OEM and aftermarket compliance?
OEM requires PPAP, APQP, SPC, and MSA with exact specification compliance. Aftermarket requires proper packaging with origin marking, fitment details, safety warnings, and catalogue cross-referencing. Safety-critical aftermarket parts still need type approval. OEM margins are 8. 15% vs aftermarket 25. 40%.
Can I benefit from FTA duty concessions?
Yes. India-Japan CEPA provides 0% duty on many HS 8708 parts. India-Korea CEPA and India-ASEAN FTA offer reduced rates. India-Thailand EHS covers several lines at zero duty. You must obtain a Certificate of Origin and meet 35. 40% domestic value addition. Use our FTA Calculator to check savings.
What EV component export opportunities exist?
The EV transition creates demand for battery packs, electric motors, BMS, power electronics, charging equipment, and thermal management. Standards include ISO 6469, AIS 038, UN R100. The PLI scheme offers higher incentives for EV components.
What export incentives are available?
RoDTEP (0.5. 2% of FOB), Duty Drawback, EPCG (zero-duty capital goods import against 6x export obligation), and Advance Authorisation (duty-free raw material import). These can be combined.
Is ACMA membership important?
Not legally required but highly beneficial. Provides access to Automechanika, AAPEX, buyer-seller meets, market intelligence, anti-dumping support, and technology partnerships. ACMA Quality Certification is recognised by global OEMs.
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