India’s auto component industry needs to move beyond manufacturing and take greater ownership of design, engineering, technology and product development as it looks to strengthen its position in global automotive supply chains, according to Automotive Component Manufacturers Association of India (ACMA) President Vikrampati Singhania.
Singhania said the next phase of India’s automotive manufacturing journey should build on the success of the Make in India programme, but focus increasingly on creating technology and intellectual property within the country.
“For years, we have spoken about Make in India. The next phase must increasingly be about create in India, engineer in India and innovate in India, for India and for the world,” Singhania said at ACMA’s annual session.
Singhania, who is also Managing Director of JK Fenner, said Indian component manufacturers will need to move higher up the value chain and take greater ownership of design, technology and product development.
“We must invest in ideas and intellectual property that will shape tomorrow’s vehicles,” he said.
India Gets Bigger Global Opportunity
Singhania said India is already among the world’s largest automotive markets and has built a deep manufacturing ecosystem, a strong entrepreneurial base and engineering capabilities that are increasingly recognised globally.
The Indian auto component industry crossed ₹7.6 lakh crore, or about $86 billion, in FY26, growing by 12.7%, while exports reached $24 billion, according to Singhania.
“These numbers give us confidence, but they should not define the limits of our ambition,” he said.
Singhania said the reconfiguration of global supply chains gives India an opportunity to emerge as a preferred global automotive partner.
The comments come at a time when global automakers and suppliers are looking to diversify sourcing and manufacturing footprints, creating opportunities for Indian component companies to deepen their role in global supply chains.
Productivity, Quality Need to Improve
Singhania said Indian factories will also need to become global benchmarks for productivity and quality if the industry wants to compete with leading manufacturing hubs.
He said investment in new technology must be accompanied by investment in skills.
“Investment in technology must go hand in hand with investment in people, giving our workforce the skills to turn new capabilities into better outcomes,” he said.
The industry has been dealing with rapid changes in vehicle technologies, including electrification, electronics, software and connected systems, which are increasing the need for new engineering and manufacturing capabilities across the supplier base.
MSMEs Must Move Up
Singhania said India’s automotive ambitions cannot be driven only by a small group of large and globally competitive suppliers.
He called for technology, productivity and quality improvements to spread across the entire component ecosystem, including smaller suppliers and MSMEs.
“Our MSMEs and smaller suppliers must have the opportunity to grow with us,” Singhania added.
India’s auto component sector has a wide supplier base, with a large number of small and medium-sized companies supplying parts, systems and sub-components to larger Tier-1 companies and vehicle manufacturers.
From Resilience to Leadership
Singhania said resilience has defined the Indian automotive industry over the past several years as companies navigated the pandemic, supply-chain disruptions, geopolitical conflicts and commodity volatility.
But he said the industry now needs to move beyond simply adapting to disruptions.
“Resilience is about responding to change. Leadership is about changing,” he said.
“The last decade demonstrated that India can manufacture for the world. The decade ahead must demonstrate that India can lead, not merely by surviving uncertainty or adapting to change, but by having the confidence, capability and ambition to shape what comes next,” he said.
He summed up the industry’s approach as: “Build deeply in India. Compete confidently in the world.”
Singhania said the government and industry will have to work together to achieve this transition. While the government has maintained its focus on manufacturing and localisation, companies will need to respond with higher investments and innovation.
“Our responsibility as industry is to match that commitment with investment, innovation and a determination to raise our own standards,” he said.
Singhania said India now offers a combination of a large domestic market, engineering talent, manufacturing capabilities, entrepreneurial energy and scale.
“The opportunity before us is no longer incremental, it is generational,” he said.
(With inputs from Ketan Thakkar, Shahkar Abidi, Prerna Lidhoo, and Mukul Yudhveer Singh)