ACMA: Indian Auto Component Industry Grows 12.7% to INR 7.6 Lakh Crore in FY26

The Indian auto component industry recorded a turnover of INR 7.60 lakh crore (USD 85.9 billion) in FY2025-26, registering a 12.7% year-on-year increase, according to the latest Industry Performance Review released by the Automotive Component Manufacturers Association of India (ACMA). The industry's growth was supported by higher domestic vehicle production, sustained investments in manufacturing capacity and technology, and continued export demand.

Supplies to original equipment manufacturers (OEMs) increased 16.3% during the year to INR 6,62,893 crore (USD 75 billion), reflecting higher vehicle production across segments. The aftermarket business grew 9% to INR 1,08,453 crore (USD 12.3 billion), supported by an expanding vehicle parc and increasing formalisation of the repair ecosystem.

Exports rose 5% to USD 24 billion (INR 2,12,176 crore), with Europe recording the strongest growth. Engine components, along with drive transmission and steering systems, accounted for more than half of total exports. Meanwhile, imports increased 13% to USD 25.4 billion (INR 2,24,287 crore), driven 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 during the fiscal year, excluding lithium-ion batteries. ACMA also noted that the industry has more than doubled in size over the past five years, recording a compound annual growth rate (CAGR) of 17% between FY21 and FY26.

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."

Looking ahead, ACMA said the sector is expected to benefit from sustained policy support, continued capacity expansion, greater localisation, multiple free trade agreements and increasing global sourcing from India. However, it also highlighted geopolitical developments, supply chain disruptions, availability of critical minerals, logistics costs and raw material price volatility as factors that will require continued attention.