India's auto component industry crosses Rs 7.6 lakh crore turnover in FY26, doubles in five years: ACMA

India's auto component industry recorded its highest-ever annual turnover of Rs 7.6 lakh crore (USD 85.9 billion) in FY2025-26, supported by strong domestic demand, higher vehicle production and steady export growth, according to the latest industry review released by the Automotive Component Manufacturers Association of India (ACMA).

The industry grew 12.7 per cent year-on-year in rupee terms during the financial year. Over the last five years, it has more than doubled in size, registering a compound annual growth rate (CAGR) of 17 per cent between FY21 and FY26, reflecting India's growing role as a global automotive manufacturing hub.

OEM supplies drive growth

Supplies to original equipment manufacturers (OEMs) remained the biggest contributor to the industry's growth, rising 16.3 per cent to Rs 6,62,893 crore (USD 75 billion), backed by higher vehicle production.

The aftermarket business also expanded, growing 9 per cent to Rs 1,08,453 crore (USD 12.3 billion). According to ACMA, the increase was supported by a larger vehicle base and the gradual formalisation of the vehicle repair and service ecosystem.

Exports reach USD 24 billion

Exports of auto components rose 5 per cent during FY26 to USD 24 billion (Rs 2,12,176 crore). Europe emerged as the fastest-growing export market, while engine components and drive transmission and steering systems continued to account for more than half of the industry's overseas shipments.

On the import side, purchases increased 13 per cent to USD 25.4 billion (Rs 2,24,287 crore), driven by demand for advanced technology products and specialised components. China, Japan and Germany remained India's largest sourcing markets.

ACMA also noted that EV components, excluding lithium-ion batteries, contributed 4.6 per cent of domestic OEM supplies during the year.

Industry shows resilience despite global challenges

Commenting on the performance, Vinnie Mehta, Director General, ACMA, said FY26 highlighted the resilience of India's auto component industry despite a challenging global environment.

He 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."

"While imports of advanced technology products and specialised components increased during the year, they also underline the next opportunity before us - to deepen localisation, 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," he added.

Positive outlook, but challenges remain

Sharing the outlook for the industry, Vikrampati Singhania President, ACMA and Vice Chairman & MD, JK Fenner (India)said, "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.
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, localisation, digitalisation and sustainable mobility solutions to enhance India’s global competitiveness."