India’s automotive component industry recorded a turnover of ₹7.60 lakh crore (USD 85.9 billion) in FY2025-26, registering a 12.7% year-on-year growth, driven by strong domestic vehicle production, steady export demand and continued investments in manufacturing capacity and technology, according to the latest industry performance review released by the Automotive Component Manufacturers Association of India (ACMA).
The report highlights that the industry has more than doubled in size over the past five years, growing at a compound annual growth rate (CAGR) of 17% between FY2021 and FY2026, reinforcing India’s position as an increasingly competitive global automotive manufacturing hub.
Supplies to original equipment manufacturers (OEMs) grew 16.3% to ₹6.63 lakh crore (USD 75 billion), supported by higher vehicle production across segments. The aftermarket business also expanded 9% to ₹1.08 lakh crore (USD 12.3 billion), reflecting a growing vehicle population and increased formalisation of the repair and maintenance ecosystem.
Exports rose 5% to USD 24 billion (₹2.12 lakh crore), with Europe emerging as the fastest-growing market. Engine components and drive transmission and steering systems continued to account for more than half of India’s component exports. Meanwhile, imports increased 13% to USD 25.4 billion (₹2.24 lakh crore), driven largely by demand for advanced technologies and specialised components, with China, Japan and Germany remaining the largest sourcing markets.
Electric vehicle components accounted for 4.6% of domestic OEM supplies, excluding lithium-ion batteries, indicating continued growth in India’s EV supply chain.
Commenting on the industry’s performance, Vinnie Mehta, Director General, ACMA, said robust domestic demand, sustained investments in technology and manufacturing capacity, and growing confidence among global customers enabled the sector to deliver another year of strong growth despite geopolitical uncertainties and supply chain challenges.
He noted that while imports of advanced technology components have increased, they also highlight an opportunity for the industry to deepen localisation, strengthen technology capabilities and move further up the value chain through innovation and resilient supply chains.
Looking ahead, Vikrampati Singhania, President, ACMA, and Vice Chairman & Managing Director, JK Fenner (India), said the medium- to long-term outlook for the industry remains positive, supported by infrastructure-led economic growth, increasing manufacturing investments, expanding global sourcing from India and new free trade agreements.
However, he added that geopolitical uncertainties, supply chain disruptions, raw material price volatility, logistics costs and the availability of critical minerals such as rare earth magnets will remain key areas requiring strategic attention as the industry continues to invest in advanced manufacturing, localisation, digitalisation and sustainable mobility solutions.