India’s auto component industry recorded steady growth in the first half of FY2025-26, driven by stable domestic demand, a strong aftermarket and rising investments in localisation and advanced technologies, including electric vehicle (EV) components, according to the latest Industry Performance Review released by the Automotive Component Manufacturers Association of India (ACMA).
Industry turnover rose 6.8 percent year-on-year to ₹3.56 lakh crore (USD 41.2 billion) during April–September 2025. Supplies to original equipment manufacturers (OEMs) increased by 7.3 percent to ₹3.04 lakh crore, supported mainly by passenger vehicles and light commercial vehicles.
Significantly, electric vehicles accounted for 4.6 percent of total component supplies to OEMs, underlining the gradual but consistent transition of India’s automotive ecosystem towards electrification and new-age mobility technologies.
The aftermarket segment also remained buoyant, growing 9 percent to ₹53,160 crore, aided by an expanding vehicle base, formalisation of repair networks and deeper penetration of organised service channels.
On the external trade front, auto component exports rose 9.3 percent to USD 12.1 billion despite global headwinds such as supply-chain disruptions, raw material price volatility and weakening demand in key international markets. Imports, however, grew faster at 12.5 percent to USD 12.3 billion, resulting in a trade deficit of USD 180 million, compared to a surplus of USD 150 million in the same period last year.
The United States and Germany remained the top export destinations, while China, Japan and Germany were the leading sources of imports—many of which include high-technology parts used in EV powertrains, electronics and battery systems.
Commenting on the performance, ACMA Director General Vinnie Mehta said the industry continues to demonstrate structural strength, supported by localisation, capacity expansion and technology upgrades. He noted that while exports remain healthy, faster growth in imports highlights the need to further strengthen domestic capabilities, especially in advanced and EV-related components.
ACMA President-Designate and Brakes India Managing Director Sriram Viji pointed out that the sector faces ongoing challenges such as geopolitical uncertainty, logistics disruptions and the limited availability of critical materials, including rare-earth magnets, which are essential for electric motors used in EVs.
Looking ahead, ACMA President Vikrampati Singhania said the second half of FY26 is expected to benefit from improving retail sentiment, festive demand and infrastructure-led activity. He added that the recent reduction in GST on select vehicle categories could provide further momentum to passenger vehicle and two-wheeler sales, with positive spillovers for EV-linked component demand.
However, he cautioned that rising freight costs, raw-material volatility and dependence on imported critical minerals could continue to pose risks to the EV supply chain and long-term cost competitiveness.
Overall, ACMA said the industry is positioning itself for the next phase of growth, with increasing focus on electric mobility, localisation of high-value components, and building resilient supply chains to support India’s transition to sustainable transportation.
