ACMA: Indian Auto Component Industry Reaches INR 7.6 Lakh Cr in FY2025-26

New Delhi, India – Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s auto component industry, released the findings of its Industry Performance Review for FY2025-26. The industry recorded a turnover of INR 7.60 lakh crore (US$ 85.9 billion), registering a growth of 12.7 percent in rupee terms over the previous fiscal. The performance was driven by robust domestic demand, higher vehicle production, sustained investments in capacity and technology, and steady export growth despite an increasingly uncertain global environment. Over the last five years, the industry has more than doubled in size, expanding at a CAGR of 17 percent, reaffirming India’s emergence as a globally competitive automotive manufacturing base.

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. As global supply chains continue to diversify, India is steadily strengthening its position as a trusted manufacturing and sourcing partner for the global automotive industry.”

He continued, “While imports of advanced technology products and specialized components increased during the year, they also underline the next opportunity before us — to deepen localization, accelerate technology development, and move further up the value chain. The industry’s long-term competitiveness will increasingly be defined by innovation, quality, sustainability, and supply-chain resilience.”

Sharing the outlook for the industry, Vikrampati Singhania, President, ACMA and Vice Chairman & MD, JK Fenner (India), stated, “The medium- to long-term outlook for the Indian auto component industry remains positive. Growing domestic demand, infrastructure-led economic growth, expanding manufacturing investments, deeper global integration through Free Trade Agreements and increasing global sourcing from India are creating significant opportunities for the sector.”

He added, “At the same time, geopolitical developments, supply-chain disruptions, the availability of critical minerals such as rare earth magnets, logistics costs, and raw material volatility will require continued strategic focus. The industry remains committed to investing in advanced manufacturing, localization, digitalization, and sustainable mobility solutions to enhance India’s global competitiveness.”

Key highlights of ACMA Industry Performance Review FY2025–26: 

• Industry turnover reached INR 7,59,234 crore (US$ 85.9 billion), up 12.7 percent.
• Supplies to OEMs grew 16.3 percent to INR 6,62,893 crore (US$ 75 billion), supported by significant growth in production of vehicles.
• Aftermarket increased 9 percent to INR 1,08,453 crore (US$ 12.3 billion), aided by a growing vehicle parc and increasing formalization of the repair ecosystem.
• Exports rose 5 percent to US$ 24 billion (INR 2,12,176 crore). Europe recorded the strongest growth, while engine components and drive transmission & steering continued to account for over half of exports.
• Imports grew 13 percent to US$ 25.4 billion (INR 2,24,287 crore), driven by higher demand for advanced technologies and specialized components. China, Japan, and Germany remained the leading sourcing markets.
• EV component supplies accounted for 4.6 percent of domestic OEM supplies (excluding lithium-ion batteries). 

Outlook

With sustained policy support, continued capacity expansion, increasing value addition, multiple Free Trade Agreements and growing global confidence in Indian manufacturing, the auto component industry remains well positioned to strengthen India’s role as a preferred global automotive manufacturing and sourcing hub. The industry will continue to focus on technology, localization, innovation, and resilient supply chains to support the next phase of growth.

Image Source: Automotive Component Manufacturers Association of India (ACMA)