- India Auto Component Industry FY 2025-26 achieved record turnover growth.
- OEM supplies, exports, and EV components continued expanding.
The Automotive Component Manufacturers Association of India published its Industry Performance Review for FY 2025–26 on July 7, 2026, highlighting another year of strong expansion for the sector. The India Auto Component Industry FY 2025-26 generated a turnover of INR 7.6 trillion (USD 85.9 billion), representing a 12.7% increase compared with the previous fiscal year. According to the association, higher domestic demand, rising vehicle production, sustained investments in manufacturing capacity and technology, and stable export performance collectively supported this growth. The report also noted that the industry has more than doubled in size during the past five years, achieving a compound annual growth rate of 17% between FY 2021 and FY 2026.
OEM Demand Continued to Drive Industry Growth
Supplies to original equipment manufacturers increased significantly during the financial year. OEM supplies reached INR 6.63 trillion (USD 75 billion), marking a 16.3% year-on-year increase as vehicle production expanded across multiple segments. Strong manufacturing activity and healthy demand from vehicle manufacturers remained key contributors to the industry's overall performance, reinforcing the importance of domestic production in sustaining growth.
Exports Maintained Positive Momentum
Auto component exports climbed 5% during FY 2025–26 to USD 24 billion (INR 2.13 trillion). Engine components along with drive, transmission and steering products represented more than half of the total export value. Among international markets, Europe registered the strongest export growth, reflecting continued overseas demand for components manufactured in India.
Imports Increased with Higher Technology Requirements
Imports of automotive components rose 13% to USD 25.4 billion (INR 2.24 trillion). The increase was mainly attributed to growing demand for advanced technology products and specialised components required by manufacturers. The report identified China, Japan, and Germany as the leading sourcing markets for imported automotive components during the fiscal year.
FY 2025–26 Auto Component Industry Performance Highlights
| Performance Indicator | FY 2025–26 |
|---|---|
| Industry Turnover | INR 7.6 trillion (USD 85.9 billion) |
| Turnover Growth | 12.7% |
| OEM Supplies | INR 6.63 trillion (USD 75 billion) |
| OEM Supply Growth | 16.3% |
| Exports | USD 24 billion (INR 2.13 trillion) |
| Export Growth | 5% |
| Imports | USD 25.4 billion (INR 2.24 trillion) |
| Import Growth | 13% |
| EV Component Share of Domestic OEM Supplies | 4.6% (excluding lithium-ion batteries) |
Electric Vehicle Components Continued to Expand
The performance review also highlighted increasing participation of electric vehicle components within the domestic supply chain. ACMA reported that electric vehicle component supplies, excluding lithium-ion batteries, represented 4.6% of domestic OEM supplies during FY 2025–26. This reflects the industry's gradual diversification into electric mobility while continuing to support conventional automotive manufacturing.
Frequently Asked Questions
What were the key highlights of India's auto component industry during FY 2025–26?
The Automotive Component Manufacturers Association of India reported that the industry achieved a turnover of INR 7.6 trillion (USD 85.9 billion), reflecting 12.7% annual growth. OEM supplies increased 16.3%, exports reached USD 24 billion, and imports rose to USD 25.4 billion. The report attributed the industry's performance to strong domestic demand, higher vehicle production, ongoing investments in technology and manufacturing capacity, stable export performance, and the continued expansion of electric vehicle component supplies, excluding lithium-ion batteries.
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