New Delhi: India’s auto component industry is likely to grow at a compound annual growth rate of about 10 per cent through fiscal 2030 as manufacturers diversify into higher‑margin precision engineering sectors such as semiconductor equipment, defence, aerospace and data‑centre power generation, a new report has said. The investment bank said many manufacturers are reshaping their product mix and using existing capabilities to maximise profits as India's auto sector enters a “transformation journey”. The brokerage said the current perception of these companies—largely as cyclical auto component manufacturers with limited pricing power and recurring capital expenditure requirements—fails to fully capture their expanding addressable markets. The brokerage forecasted auto component companies to outperform vehicle manufacturers during the next Pay Commission-led demand cycle. "Suppliers benefit from higher production volumes across multiple original equipment manufacturers rather than depending on the success of individual vehicle models," it said.