Even as steep tariffs, slowing global markets and supply-side pressures weighed on international trade, India’s auto component industry posted near double-digit export growth in the first half of the fiscal amid mounting global headwinds.
14 Jan 2026 | 234 Views | By Mukul Yudhveer Singh
India’s auto component industry delivered a resilient export performance in the first half of the fiscal, even as global trade conditions remained challenging and tariff pressures intensified across key markets.
Sharing industry data, Automotive Component Manufacturers Association of India (ACMA) said auto component exports grew by around 9.3 percent ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
India’s auto component industry delivered a resilient export performance in the first half of the fiscal, even as global trade conditions remained challenging and tariff pressures intensified across key markets.
Sharing industry data, Automotive Component Manufacturers Association of India (ACMA) said auto component exports grew by around 9.3 percent in the first six months, approaching double-digit growth. ACMA described this as a strong outcome, particularly given the severe headwinds faced by exporters during the period.
The industry body highlighted that this export growth came despite multiple challenges, including elevated raw material costs, logistics disruptions, tariff-related pressures and slowing demand in major international markets. Both the European Union and the United States, two of India’s most important export destinations, are currently under pressure, with automotive markets not performing at the levels seen in recent years.
Tariff Impact Deepens
ACMA specifically pointed to the impact of US tariffs on auto component exports. Components exported to the US are currently subject to a 25 percent tariff. Earlier, tariffs imposed under Section 232 covered around 55 percent of India’s auto component exports to the US, primarily car components. In addition, reciprocal tariffs had impacted commercial vehicle and off-highway parts, pushing duties up to 50 percent for certain categories.
A clarification issued from 1 November brought these categories back to a 25 percent tariff level, resulting in auto component supplies to the US currently being subject to a uniform 25 percent tariff.
ACMA noted that absorbing such tariff levels is extremely difficult for an industry that operates on thin margins. While some exporters may manage the impact in the short term, sustained absorption of these costs is not viable over the longer term.
Importantly, ACMA said the full impact of US tariffs is expected to be felt more sharply in the second half of the year. Since many of the reciprocal tariffs were announced around August and September, export data for the first six months does not yet fully reflect their effect. Official trade data beyond September is also not available at present, as export and import statistics are released with a lag, though anecdotal feedback from industry indicates increasing pressure on exporters.
Despite these challenges, exports to the US in the first six months remained largely steady. The United States continued to be India’s single largest export destination for auto components, followed by Germany. ACMA highlighted the consistency in export exposure across other markets as well, with countries such as Thailand, Brazil and the UAE each accounting for around four percent of exports, followed by Mexico, Turkey and the UK at close to three percent each.
Imports Surge
While exports showed resilience, imports grew at a faster pace during the same period. Auto component imports increased by over 12 percent to around USD 12.3 billion, resulting in a trade deficit in the first half compared to a trade surplus in the previous year.
Asia continued to dominate India’s auto component imports, with China accounting for the largest share. Imports from China grew marginally higher, while Japan, Germany and South Korea remained other key sourcing destinations. ACMA said this import pattern reflects the presence of global OEMs and component manufacturers operating in India and sourcing parts from their international supply bases.
Turning to overall industry performance, ACMA said total auto component industry turnover grew by close to seven percent in the first half. Growth was supported by steady domestic demand, with OEM-led growth of around 7.3 percent. More than half of this OEM growth came from passenger vehicles, while light commercial vehicles were another key contributor.
ACMA said the growth was driven largely by increased supply rather than pricing, indicating volume-led momentum in the domestic market. Domestic conditions remained supportive during the period, helping offset some of the pressures on exports.
The aftermarket also performed well. After growing by around six percent previously, the aftermarket expanded by close to nine percent in the first six months, supported by an increasing vehicle parc and higher maintenance demand.
In terms of product mix, ACMA noted that the contribution of different component categories to overall industry turnover remained largely unchanged. Engine components continued to account for nearly a quarter of total sales, followed by suspension and braking systems, body and chassis parts, and drive transmission and steering components.
A similar pattern was visible in exports, with engine components and drive transmission and steering parts forming a significant share. Imports also showed a comparable composition, dominated by engine and transmission-related components.
ACMA also highlighted the growing role of electric vehicles. Supplies to EV OEMs accounted for around five percent of total OEM supplies, reflecting the continued increase in EV penetration in the domestic market.