# India automotive industry growth and outsourcing > Live situation record from CLSTR: https://clstr.news/situations/india-automotive-industry-growth-and-outsourcing > Updated: 2026-09-02T09:59:40.000Z. Sources: 5. Developments: 2. India is establishing itself as a major center for the automotive industry, both in engineering services and component manufacturing. The country has become a global hub for automotive engineering outsourcing (ESO), attracting nearly US$ 40 billion in foreign direct investment. Major international manufacturers, including Ford, Honda, Mercedes-Benz, and BYD, are utilizing India to optimize costs, with some leveraging the region to reduce platform development investments from several billion dollars to between US$ 400 million and US$ 800 million. Building on this momentum, India’s automotive component industry is targeting a turnover of $200 billion by fiscal year 2030. The sector reached $86 billion in FY26, following a 17 per cent compound annual growth rate over the last decade. While industry leaders face risks such as raw material costs and labor shortages, exports are expanding. Recent data shows auto-component exports reached approximately $24.5 billion, with Africa emerging as a significant new market alongside sustained growth in Europe. ## Timeline ### 2026-09-02: India auto component industry targets $200 billion turnover by FY30 India's auto component industry targets $200 billion in turnover by FY30, focusing on export growth in Africa and building resilience against supply chain and raw material volatility. 3 sources. https://clstr.news/cluster/india-auto-component-industry-targets-200-billion-turnover-by-fy30 ### 2026-08-24: India emerges as global automotive engineering outsourcing hub India is becoming a major automotive engineering outsourcing hub, attracting nearly US$ 40 billion in foreign investment from companies like Ford, BMW, and BYD to reduce development costs. 2 sources. https://clstr.news/cluster/india-emerges-as-global-automotive-engineering-outsourcing-hub --- Cite as: India automotive industry growth and outsourcing. CLSTR, https://clstr.news/situations/india-automotive-industry-growth-and-outsourcing