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The Indian auto component industry recorded a turnover of ₹7.6 lakh crore in FY2025-26, registering a 12.7 per cent year-on-year growth, according to the latest Industry Performance Review released by the Automotive Component Manufacturers Association of India (ACMA).
The industry's turnover stood at ₹7,59,234 crore (USD 85.9 billion), supported by strong domestic demand, higher vehicle production, continued investments in manufacturing capacity and technology, and steady export growth despite global uncertainties.
According to ACMA, the industry has more than doubled in size over the last five years, recording a compound annual growth rate (CAGR) of 17 per cent between FY21 and FY26.
Supplies to original equipment manufacturers (OEMs) emerged as the biggest growth driver during the fiscal, rising 16.3 per cent to ₹6,62,893 crore (USD 75 billion). The association attributed this increase to higher vehicle production across segments.
The aftermarket also maintained positive momentum, growing 9 per cent to ₹1,08,453 crore (USD 12.3 billion). ACMA said the increase was supported by an expanding vehicle parc and the growing formalisation of India's vehicle repair ecosystem.
Auto component exports increased by 5 per cent to USD 24 billion ( ₹2,12,176 crore) during FY26. Europe emerged as the fastest-growing export market, while engine components along with drive transmission and steering systems continued to account for more than half of the industry's exports.
Imports, however, grew at a faster pace, increasing 13 per cent to USD 25.4 billion ( ₹2,24,287 crore). ACMA attributed the rise to higher demand for advanced technology products and specialised components. China, Japan and Germany remained the largest sourcing markets.
The association also noted that electric vehicle components, excluding lithium-ion batteries, accounted for 4.6 per cent of domestic OEM supplies during the financial year.
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Commenting on the industry's performance, Vinnie Mehta, Director General of ACMA, said the sector demonstrated resilience despite a challenging global environment. He noted that strong domestic demand, investments in capacity and technology, and continued confidence from global customers helped the industry deliver another year of healthy growth.
Mehta added that as global supply chains continue to diversify, India is steadily strengthening its position as a manufacturing and sourcing destination for the automotive industry. He also said the rise in imports of advanced technology products highlights the need to deepen localisation, accelerate technology development and move further up the value chain.
Sharing the industry's outlook, ACMA President Vikrampati Singhania said the medium- to long-term prospects remain positive, supported by rising domestic demand, infrastructure-led economic growth, expanding manufacturing investments, increasing global sourcing from India and multiple Free Trade Agreements.
He added that geopolitical developments, supply chain disruptions, availability of critical minerals such as rare earth magnets, logistics costs and raw material price volatility remain areas that require strategic focus. According to Singhania, the industry will continue investing in advanced manufacturing, localisation, digitalisation and sustainable mobility solutions to improve India's global competitiveness.
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