Auto Component Turnover Hits ₹7.6 Lakh Crore, Grows 17% a Year Over Five Years

India's auto component industry closed FY26 with a turnover of roughly ₹7.59 lakh crore – about $86 billion – after expanding at around 17% a year over the past five years, according to Beyond Resilience, a report released by Boston Consulting Group and the Automotive Component Manufacturers Association of India in September 2026.

The five-year pace is materially faster than the 12% compound annual growth the sector delivered over the full ten-year window from FY16, when turnover stood at about ₹2.56 lakh crore. Growth accelerated in the second half of the decade, and by FY26 the industry stood well clear of its pre-COVID level rather than merely recovering to it.

All three demand channels sped up. Sales to domestic OEMs, the largest, reached ₹6.63 lakh crore in FY26, with the growth rate rising from 11% over ten years to 19% over five. Exports reached ₹2.12 lakh crore, up from 12% to 17%. The aftermarket, the slowest of the three, reached ₹1.08 lakh crore, moving from 9% to 11%.

The three channels sum to more than the headline turnover figure because the industry measure nets off imports. On the report's definition, total turnover equals sales to OEMs plus exports plus aftermarket, less imports – leaving an implied import figure of roughly ₹2.2 lakh crore for FY26, a reminder that a substantial share of domestic component demand is still met from outside India.

The trough is recent enough to be worth restating. Turnover fell from ₹3.96 lakh crore in FY19 to ₹3.50 lakh crore in FY20 and ₹3.41 lakh crore in FY21, through the auto slowdown, the BS-VI transition and the pandemic. It has risen every year since, through ₹4.21 lakh crore in FY22, ₹5.60 lakh crore in FY23, ₹6.15 lakh crore in FY24 and ₹6.74 lakh crore in FY25.

Underneath the topline, two structural markers moved. Localisation has crossed 70% of industry requirements, up from above 60% a decade ago, even as domestic vehicle demand more than doubled from about 20 million units in FY16 to 28.3 million in FY26. And import substitution has been measurable in specific categories, with auto end-use imports of wheels and rims down about 74% between FY19 and FY26, engines down about 39% and steering parts down about 12%.

The component industry has grown faster in value than the vehicle market has in volume – roughly 12% a year against about 3% a year over the decade – reflecting rising content per vehicle alongside the volume expansion.