The Indian automotive component industry continued its growth trajectory in FY2025-26, achieving a turnover of ₹7.60 lakh crore (USD 85.9 billion), according to the latest Industry Performance Review released by the Automotive Component Manufacturers Association of India (ACMA). The industry recorded a healthy 12.7% year-on-year growth in rupee terms, supported by robust domestic demand, rising vehicle production, sustained investments in manufacturing capacity and technology, and resilient export performance.
During the fiscal year, supplies to original equipment manufacturers (OEMs) grew by 16.3%, while component exports reached USD 24 billion, reflecting the increasing global competitiveness of India’s auto component sector despite a challenging international business environment.
Highlighting the industry’s long-term momentum, the report noted that the Indian auto component sector has more than doubled in size over the past five years, registering a compound annual growth rate (CAGR) of 17% between FY2020-21 and FY2025-26. The sustained expansion underscores India’s growing stature as a global automotive manufacturing and sourcing hub, supported by continuous technological advancements, capacity expansion, and a strong domestic automotive market.
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, Mr 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 rose 12.7% year-on-year to ₹7,59,234 crore (USD 85.9 billion).
- Supplies to Original Equipment Manufacturers (OEMs) increased 16.3% to ₹6,62,893 crore (USD 75 billion), driven by higher vehicle production across segments.
- The aftermarket expanded 9% to ₹1,08,453 crore (USD 12.3 billion), supported by a growing vehicle parc and the increasing formalisation of the automotive repair and service ecosystem.
- Exports grew 5% to USD 24 billion (₹2,12,176 crore). Europe emerged as the fastest-growing export market, while engine components and drive transmission & steering systems together continued to contribute more than half of total exports.
- Imports increased 13% to USD 25.4 billion (₹2,24,287 crore), reflecting rising demand for advanced technologies and specialised components. China, Japan, and Germany remained India’s leading sourcing markets.
- Electric vehicle (EV) components accounted for 4.6% of domestic OEM supplies, excluding lithium-ion batteries, indicating the sector’s gradual shift towards electric mobility.
Industry Outlook
Looking ahead, ACMA expects the Indian auto component industry to maintain its growth momentum, supported by favourable government policies, ongoing capacity expansion, higher domestic value addition, multiple Free Trade Agreements (FTAs), and increasing global confidence in India’s manufacturing capabilities.
The industry is expected to intensify its focus on technology adoption, localisation, innovation, and resilient supply chains, further strengthening India’s position as a preferred global hub for automotive manufacturing and component sourcing in the years ahead.
