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

India's auto component industry recorded a turnover of ₹7.60 trillion ($85.9 billion) in FY26, registering growth of 12.7 per cent in rupee terms over the previous financial year, the Automotive Component Manufacturers Association of India (ACMA) said on Tuesday.

 

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 past five years, the industry has more than doubled in size, expanding at a compound annual growth rate (CAGR) 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.

 

Supplies to original equipment manufacturers (OEMs) grew 16.3 per cent to ₹6.63 trillion ($75 billion), supported by higher vehicle production. The aftermarket expanded 9 per cent to ₹1.08 trillion ($12.3 billion), aided by a growing vehicle parc and increasing formalisation of the repair ecosystem.

 

Exports rose 5 per cent to $24 billion (₹2.12 trillion), with Europe recording the strongest growth. Engine components, and drive transmission and steering systems together accounted for more than half of total exports.

 

Imports increased 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) components 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 said.

 

Vikrampati Singhania, President, ACMA, and Vice Chairman and Managing Director, JK Fenner (India), said the medium- to long-term outlook for the 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," Singhania said.

 

ACMA said sustained policy support, continued capacity expansion, increasing value addition, multiple free trade agreements and growing global confidence in Indian manufacturing would help strengthen India's position as a preferred global automotive manufacturing and sourcing hub.

 

"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," Singhania added.