Indian Auto Component Industry scales INR. 7.6 lakh crore in FY2025–26

Commenting on the industry's performance, Vinnie Mehta, Director General, ACMA, said: “FY26 reaffirmed the strength and resilience of India’s auto component industry. Robust domestic demand, continued investments in capacity and technology, and the confidence of global customers enabled the industry to deliver another year of healthy growth despite a challenging international environment. As global supply chains continue to diversify, India is steadily strengthening its position as a trusted manufacturing and sourcing partner for the global automotive industry.

“While imports of advanced technology products and specialised components increased during the year, they also underline the next opportunity before us - to deepen localisation, accelerate technology development and move further up the value chain. The industry’s long-term competitiveness will increasingly be defined by innovation, quality, sustainability and supply-chain resilience.”

Sharing the outlook for the industry, Vikrampati Singhania President, ACMA and Vice Chairman & MD, JK Fenner (India) said: “The medium- to long-term outlook for the Indian auto component industry remains positive. Growing domestic demand, infrastructure-led economic growth, expanding manufacturing investments, deeper global integration through Free Trade Agreements and increasing global sourcing from India are creating significant opportunities for the sector.

“At the same time, geopolitical developments, supply-chain disruptions, the availability of critical minerals such as rare earth magnets, logistics costs and raw material volatility will require continued strategic focus. The industry remains committed to investing in advanced manufacturing, localisation, digitalisation and sustainable mobility solutions to enhance India’s global competitiveness.”

Key highlights of ACMA Industry Performance Review FY2025–26:

• Industry turnover reached INR. 7,59,234 crore (USD 85.9 billion), up 12.7%.

• Supplies to OEMs grew 16.3% to INR. 6,62,893 crore (USD 75 billion), supported by significant growth in production of vehicles.

• Aftermarket increased 9% to INR. 1,08,453 crore (USD 12.3 billion), aided by a growing vehicle parc and increasing formalisation of the repair ecosystem.

• Exports rose 5% to USD 24 billion (INR. 2,12,176 crore). Europe recorded the strongest growth, while engine components and drive transmission & steering continued to account for over half of exports.

• Imports grew 13% to USD 25.4 billion (INR. 2,24,287 crore), driven by higher demand for advanced technologies and specialised components. China, Japan and Germany remained the leading sourcing markets.

• EV component supplies accounted for 4.6% of domestic OEM supplies (excluding lithium-ion batteries).

Outlook: With sustained policy support, continued capacity expansion, increasing value addition, multiple Free Trade Agreements and growing global confidence in Indian manufacturing, the auto component industry remains well positioned to strengthen India's role as a preferred global automotive manufacturing and sourcing hub. The industry will continue to focus on technology, localisation, innovation and resilient supply chains to support the next phase of growth.