India Auto Components Industry Grows 12.7% To Rs 7.6 Lakh Cr In FY26
India's auto components industry posted a turnover of Rs 7.60 lakh crore (USD 85.9 billion) in FY2025-26, up 12.7 per cent from Rs 6.74 lakh crore a year earlier, driven by strong domestic demand, higher vehicle production and continued investments in manufacturing capacity, according to the Automotive Component Manufacturers Association of India (ACMA).The industry is expected to grow by 8-10 per cent in the current financial year, supported by domestic demand and exports despite geopolitical uncertainties, ACMA said in its Industry Performance Review for FY2025-26 released on Tuesday.
The association said the sector has more than doubled in size over the past five years, recording a compound annual growth rate (CAGR) of 17 per cent, reflecting India's expanding role in the global automotive manufacturing supply chain.
"The medium-to-long-term outlook for the Indian auto component industry remains positive," said Vikrampati Singhania, President, ACMA, and Vice Chairman and Managing Director, JK Fenner (India).
He attributed the outlook to rising domestic demand, infrastructure-led economic growth, manufacturing investments, deeper integration through Free Trade Agreements (FTAs) and increasing global sourcing from India.
Singhania said the industry will continue investing in advanced manufacturing, localisation, digitalisation and sustainable mobility solutions to strengthen India's global competitiveness. However, he noted that geopolitical developments, supply chain disruptions, availability of critical minerals such as rare earth magnets, logistics costs and raw material price volatility remain key challenges.
Focus On Localisation
Vinnie Mehta, Director General, ACMA, said the diversification of global supply chains is creating opportunities for India to strengthen its position as a manufacturing and sourcing hub for the automotive industry.
He said imports of advanced technology products and specialised components increased during FY2025-26, underscoring the need to deepen localisation and accelerate technology development.
According to Mehta, the industry's long-term competitiveness will depend on its ability to improve innovation, product quality, sustainability and supply chain resilience.
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