The Automotive Component Manufacturers Association of India (ACMA), the apex body of India’s auto component sector, has released its Industry Performance Review for FY 2024-25. The industry recorded a turnover of ₹6.73 lakh crore (USD 80.2 billion), marking a year-on-year growth of 9.6%. From FY2020 to FY2025, the sector grew at a robust CAGR of 14%, nearly doubling in value over the five-year period.
Commenting on the sector’s performance, Vinnie Mehta, Director General, ACMA, stated, “The Indian auto component industry continues to demonstrate exceptional resilience and sustained growth. With positive momentum across OEM sales, exports, and the aftermarket, the industry registered a turnover of ₹6.73 lakh crore (USD 80.2 billion) in FY25, reflecting a 9.6% increase over the previous fiscal. A trade surplus of USD 453 million highlights India’s rising competitiveness and successful localisation efforts. The aftermarket segment grew by 6%, reaching ₹99,948 crore, while component supplies to domestic OEMs rose 10% to ₹5.7 lakh crore.”
Echoing the optimism, Shradha Suri Marwah, President, ACMA & CMD, Subros, said, “The Indian auto component industry remains a key pillar of the nation’s manufacturing strength. FY25 marked another milestone year, driven by strong domestic demand, expanding exports, and increased value addition. As India moves towards next-generation mobility, our industry is aligning itself through focused investments in technology, localisation, and innovation to cater effectively to both domestic and global markets.”
Industry outlook strong amidst recovery and global headwinds: Shradha Suri Marwah
Sharing her perspective on the industry’s sentiment and outlook, Shradha Suri Marwah noted, “FY25 witnessed broad-based growth and recovery across all segments. Two-wheelers led the way with robust performance, while the passenger and commercial vehicle segments maintained steady, albeit moderate, growth. On the exports front, ongoing geopolitical tensions have posed supply chain challenges, yet the industry continues to display strong resilience and remains on a healthy trajectory.”
She added, “There is a clear acceleration in investments focused on higher value addition, technological advancement, and deeper localisation to meet evolving customer expectations and shifting global supply chain dynamics. However, the limited availability of rare-earth magnets remains a pressing concern, highlighting the urgent need for a national strategy on critical materials to safeguard the future of EV and mobility manufacturing in India.”
Key Highlights from ACMA Industry Performance Review for FY2024-25
- Sales to OEMs: Auto component supplies to Original Equipment Manufacturers (OEMs) reached ₹5.70 lakh crore, reflecting a 10% year-on-year growth. This was driven by an 8% increase in overall vehicle production across the country. Rising demand for value-added components and a market shift towards larger, more powerful vehicles also contributed significantly to the sector’s growth.
- Exports: Auto component exports rose by 8%, reaching USD 22.9 billion (₹1,92,346 crore), up from USD 21.2 billion (₹1,75,960 crore) in FY2023-24. North America, accounting for 32% of total exports, witnessed an 8.4% increase. Exports to Asia, which comprise 26%, grew by 15.1%, while Europe (29.5%) saw a 2.1% decline. Major export categories included drive transmission and steering parts, engine components, suspension systems, braking components, and body/chassis parts.
- Imports: Imports stood at USD 22.4 billion, up 7.3% from the previous year. Asia contributed to nearly two-thirds of total imports. The industry recorded a trade surplus of USD 453 million, an improvement from USD 300 million in FY2023-24, underscoring India’s rising global competitiveness and progress in localisation.
- Aftermarket: The domestic aftermarket segment grew by 6% to ₹99,948 crore (USD 11.8 billion), supported by a growing base of used vehicles, increasing formalisation of the vehicle repair ecosystem, and rising rural demand fueled by the expansion of e-commerce.
 in FY25, registering 9.6% annual growth and a 14% CAGR over five years. While two-wheelers drove strong growth, passenger and commercial vehicles saw steady progress. Despite export challenges due to geopolitical tensions, the industry remains resilient and on a strong growth path.){kind=link}