Indian auto component industry scales ₹7.6 trn turnover in FY2025-26

The Automotive Component Manufacturers Association of India (ACMA), the apex body representing India's auto component industry, on Tuesday said the sector has recorded a turnover of ₹7.60 trillion ($85.9 billion) in financial year 2025-26 (FY26), registering a growth of 12.7 per cent in rupee terms over FY25.

 

The performance was driven by robust domestic demand, higher vehicle production, sustained investments in capacity and technology, and steady export growth despite an increasingly uncertain global environment. Over the last five years, the industry has more than doubled in size, expanding at a CAGR (compound annual growth rate) of 17 per cent, reaffirming India's emergence as a globally competitive automotive manufacturing base.

 

“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," said Vinnie Mehta, director general, ACMA.

 

During the period under review, the supplies to original equipment manufacturers (OEMs) grew16.3 per cent to ₹6.63 trillion ($75 billion), supported by significant growth in production of vehicles. Similarly, aftermarket increased 9 per cent to ₹1.08 trillion ($12.3 billion), aided by a growing vehicle population and increasing formalisation of the repair ecosystem.

 

Exports also rose 5 per cent to $24 billion (₹2.12 trillion). Europe recorded the strongest growth, while engine components and drive transmission and steering continued to account for over half of exports.

 

Imports grew 13 per cent to $25.4 billion (₹2.24 trillion), driven by higher demand for advanced technologies and specialised components. China, Japan, and Germany remained the leading sourcing markets.

 

Electric vehicle (EV) component supplies accounted for 4.6 per cent of domestic OEM supplies (excluding lithium-ion batteries).

 

"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," Mehta added.

 

Vikrampati Singhania, president, ACMA, and vice-chairman and managing director (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 (FTAs), and increasing global sourcing from India are creating significant opportunities for the sector."

   

The ACMA outlook indicated that with sustained policy support, continued capacity expansion, increasing value addition, multiple FTAs, 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, it said.

 

"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, digitalization, and sustainable mobility solutions to enhance India’s global competitiveness," Singhania added.