Video: Has India's Auto Components Industry Trumped The Tariff Equation?

India’s auto component industry has begun FY26 on a stable footing, supported by steady domestic vehicle demand and a resilient aftermarket, even as global trade uncertainties and tariff pressures continue to weigh on exports.

In a conversation with Autocar Professional, Vikrampati Singhania, President of the Automotive Component Manufacturers Association of India (ACMA) and Managing Director of JK Fenner (India) Ltd, along with Vinnie Mehta, Director General, Automotive Component Manufacturers Association of India, shared insights into the sector’s performance, export trends and emerging risks.

Despite continued headwinds from US tariffs, slower demand in key overseas markets and ongoing geopolitical volatility, the domestic market has acted as a critical buffer. Passenger vehicles and light commercial vehicles contributed meaningfully to growth, while the aftermarket delivered stronger momentum than expected, helping offset export stress.

The ACMA leadership highlighted ongoing engagement with the Government of India and the Reserve Bank of India on policy support, liquidity and competitiveness, especially for export-oriented manufacturers. Free trade agreements were identified as a key lever for improving long-term market access and supply chain integration.

Another structural shift reshaping the industry is the rapid rise in electronics and semiconductor content across vehicles, including ICE models. This trend is opening new opportunities for Tier 1 suppliers, EMS players and new entrants into the auto ecosystem.

While FY26 has started on a steady note, industry leaders cautioned that global trade risks and geopolitical uncertainty will continue to define the operating environment, making agility and policy alignment critical in the months ahead.

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