The Automotive Component Manufacturers Association of India (ACMA) has released its Industry Performance Review for the first half of FY 2025–26 (April–September 2025), reporting steady growth for the Indian auto component sector amid challenging global conditions.
The industry recorded a growth of 6.8 percent, reaching ₹3.56 lakh crore (USD 41.2 billion) in H1 FY26 compared to the same period last year. Growth was supported by stable domestic demand, a resilient aftermarket, and sustained investments in capacity expansion, localisation, and technology upgrades.
Sales to original equipment manufacturers (OEMs) increased by 7.3 percent to ₹3.04 lakh crore (USD 35.2 billion), driven largely by demand from the passenger vehicle and light commercial vehicle (LCV) segments. The aftermarket delivered strong performance, growing 9 percent to ₹53,160 crore (USD 6.1 billion), aided by an expanding vehicle parc, increasing formalisation of the repair and maintenance ecosystem, and deeper penetration of organised distribution channels.
On the trade front, auto component exports rose by 9.3 percent to USD 12.1 billion, despite global headwinds such as supply-chain disruptions, raw material cost pressures, and softer demand in key international markets. Imports grew by approximately 12.5 percent to USD 12.3 billion, resulting in a trade deficit of USD 180 million, compared with a surplus of USD 150 million in H1 FY25.
The United States and Germany continued to be among India’s top export destinations, while China, Japan, and Germany remained the leading sources of auto component imports.
Electric vehicles accounted for 4.6 percent of total supplies to OEMs, underscoring the steady transition towards new-age mobility.
Sharing his perspective on the sector’s performance, Vinnie Mehta, Director General, ACMA, said that the H1 FY26 results underscore the inherent strength of India’s automotive ecosystem, marked by sustained growth across OEM supplies and the aftermarket. He noted that while export momentum has remained healthy, imports have grown at a faster pace, resulting in a marginal trade deficit. Mehta added that the industry is addressing these challenges through deeper localisation, capacity expansion, and closer collaboration with stakeholders, while gearing up for the next phase of growth driven by emerging mobility technologies.
Commenting on the evolving industry dynamics, Sriram Viji, President-Designate, ACMA and Managing Director, Brakes India Pvt. Ltd., said that while domestic demand remains broadly stable, the operating environment continues to be influenced by geopolitical uncertainties, supply-chain disruptions, and cost pressures. He emphasised that addressing challenges such as the availability of critical materials, including rare-earth magnets, and strengthening supply-chain resilience will be essential to sustaining long-term growth.
Elaborating on the mood of the industry and outlook for the near to mid-term future, Vikrampati Singhania, President ACMA and Managing Director, J K Fenner (India) Ltd. added, “While demand conditions in the first half were driven largely by underlying domestic fundamentals, the second half of the fiscal is expected to benefit from improving retail sentiment, supported by recent policy measures, seasonal demand and continued infrastructure-led activity.
The reduction in GST on select vehicle categories, effective post-September, is expected to support demand momentum in the second half of FY26, particularly in passenger vehicles and two-wheelers, with potential positive spillovers for the component ecosystem. In addition, sustained performance in tractors and a gradual recovery in commercial vehicles could further strengthen demand as utilisation levels improve.
At the same time, the industry continues to face key headwinds including geopolitical uncertainties, rising freight costs, raw-material price volatility, and the limited availability of critical materials such as rare-earth magnets.”
Summary of Industry Performance for H1 FY2026:
| H1 FY 2026 | H1 FY 2025 | Growth | |
| Industry Turnover (INR Cr) | 356,193 | 333,458 | 6.8 % |
| Supply to OEMs (INR Cr) | 304,663 | 283,848 | 7.3 % |
| Aftermarket (INR Cr) | 53,160 | 48,771 | 9.0 % |
| Exports (USD Bn) | 12.2 | 11.1 | 9.3% |
| Imports (USD Bn) | 12.3 | 10.9 | 12.5 % |
Note:
The turnover data covers total supplies from the auto component industry—including ACMA members and non-members—to on-road and off-road vehicle manufacturers, the domestic aftermarket, and export markets. It also includes captive component supplies to OEMs, as well as contributions from unorganised and smaller players. Growth rates for overall industry turnover, OEM supplies, and aftermarket sales are calculated in rupee terms, while export and import growth figures are reported in US dollar terms.
