India Auto Component Industry Urged to Lead Design and Technology

India’s Auto Component Industry Must Move Up the Value Chain

India’s auto component industry needs to move beyond manufacturing and take greater ownership of design, engineering, technology and product development as it seeks to strengthen its position in global automotive supply chains, according to Automotive Component Manufacturers Association of India President Vikrampati Singhania. Singhania said the next phase of India’s automotive manufacturing journey should build on the success of the Make in India program while increasingly focusing on creating technology and intellectual property within the country. “For years, we have spoken about Make in India. The next phase must increasingly be about create in India, engineer in India and innovate in India, for India and for the world,” Singhania said at ACMA’s annual session.

Greater Focus on Design, Engineering and Intellectual Property

Singhania, who is also Managing Director of JK Fenner, said Indian component manufacturers will need to move higher up the value chain and take greater ownership of design, technology and product development. “We must invest in ideas and intellectual property that will shape tomorrow’s vehicles,” he said. His comments point to a broader shift in the role expected from suppliers, with Indian companies being encouraged to develop proprietary technologies and engineering capabilities rather than relying primarily on manufacturing execution. The objective is to build capabilities that can support both the domestic market and international vehicle programs while allowing suppliers to capture greater value from increasingly technology-intensive automotive products.

India Gains a Larger Global Supply-Chain Opportunity

Singhania said India is already among the world’s largest automotive markets and has developed a deep manufacturing ecosystem, a strong entrepreneurial base and engineering capabilities that are increasingly recognized globally. The Indian auto component industry crossed ₹7.6 lakh crore, or about $86 billion, in FY26, growing by 12.7%, while exports reached $24 billion, according to Singhania. “These numbers give us confidence, but they should not define the limits of our ambition,” he said. He added that the reconfiguration of global supply chains gives India an opportunity to emerge as a preferred global automotive partner.

Global Automakers Are Creating New Opportunities

The opportunity is emerging as global automakers and suppliers seek to diversify sourcing and manufacturing footprints, creating potential for Indian component companies to deepen their participation in international supply chains. Singhania’s comments come against this changing global backdrop, where supply-chain resilience and geographic diversification are becoming increasingly important considerations for automotive companies. India’s combination of market scale, manufacturing capacity and engineering talent provides a foundation for greater integration into global programs. However, moving from a manufacturing-focused role toward technology-led supply-chain leadership will require suppliers to demonstrate consistent quality, stronger product-development capabilities and the ability to deliver increasingly complex components and systems for customers in multiple markets.

Productivity, Quality and Workforce Skills Remain Critical

Singhania said Indian factories will also need to become global benchmarks for productivity and quality if the industry wants to compete with leading manufacturing hubs. He emphasized that investment in new technology must be accompanied by investment in skills. “Investment in technology must go hand in hand with investment in people, giving our workforce the skills to turn new capabilities into better outcomes,” he said. The requirement is becoming more important as vehicle technologies evolve rapidly. Electrification, electronics, software and connected systems are changing supplier requirements and increasing the need for new engineering, manufacturing and workforce capabilities across the automotive component ecosystem.

Smaller Suppliers and MSMEs Need to Advance

Singhania said India’s automotive ambitions cannot be driven only by a small group of large and globally competitive suppliers. He called for technology, productivity and quality improvements to spread across the entire component ecosystem, including smaller suppliers and MSMEs. “Our MSMEs and smaller suppliers must have the opportunity to grow with us,” Singhania added. The India auto component sector has a wide supplier base, with a large number of small and medium-sized companies supplying parts, systems and sub-components to larger Tier-1 companies and vehicle manufacturers. Strengthening these businesses could help expand the depth and resilience of the domestic supply network while creating broader opportunities for participation in higher-value automotive programs.

Industry Must Shift From Resilience to Leadership

Singhania said resilience has defined the Indian automotive industry over the past several years as companies navigated the pandemic, supply-chain disruptions, geopolitical conflicts and commodity volatility. But he said the industry now needs to move beyond simply adapting to disruptions. “Resilience is about responding to change. Leadership is about changing,” he said. “The last decade demonstrated that India can manufacture for the world. The decade ahead must demonstrate that India can lead, not merely by surviving uncertainty or adapting to change, but by having the confidence, capability and ambition to shape what comes next,” he said. He summed up the industry’s approach as: “Build deeply in India. Compete confidently in the world.”

Government and Industry Must Work Together

Singhania said the government and industry will have to work together to achieve this transition. While the government has maintained its focus on manufacturing and localization, companies will need to respond with higher investments and innovation. “Our responsibility as industry is to match that commitment with investment, innovation and a determination to raise our own standards,” he said. The transition therefore depends on more than policy support or manufacturing capacity alone. Suppliers will need to increase investment in research, engineering, technology and workforce development while raising productivity and quality standards. This combination will be important if Indian component manufacturers are to convert the country’s existing manufacturing strengths into durable competitive advantages in global automotive supply chains.

A Generational Opportunity for Indian Automotive Suppliers

Singhania said India now offers a combination of a large domestic market, engineering talent, manufacturing capabilities, entrepreneurial energy and scale. “The opportunity before us is no longer incremental, it is generational,” he said. His assessment places the Indian component industry at a potential inflection point, where established manufacturing capabilities can become the foundation for greater ownership of technology and product development. For suppliers, the challenge will be to translate this opportunity into sustained investment, stronger intellectual property, better skills and globally competitive products. The direction outlined by Singhania is therefore not simply about increasing production in India, but about expanding the country’s role in determining the technologies and products that shape future vehicles worldwide.

Frequently Asked Questions

What does India’s auto component industry need to do to strengthen its global position?
India’s auto component industry needs to move beyond manufacturing and take greater ownership of design, engineering, technology and product development. Singhania said suppliers should increasingly create technology and intellectual property within India while improving productivity, quality and workforce skills. The sector also needs to help smaller suppliers and MSMEs advance alongside larger companies. These capabilities could allow Indian component manufacturers to participate in higher-value global automotive programs and take a stronger role in changing international supply chains.