Auto component industry turnover hits ₹7.6 lakh crore in FY26; OEM supplies up 16.3%

India's automotive component industry clocked a turnover of ₹7.60 lakh crore ($85.9 billion) in FY2025-26, registering a 12.7% year-on-year growth, buoyed by robust domestic vehicle production, rising exports and sustained investments in capacity expansion and technology. The industry has more than doubled in size over the past five years, posting a compound annual growth rate (CAGR) of 17%, according to the latest Industry Performance Review released by the Automotive Component Manufacturers Association (ACMA).

Supplies to original equipment manufacturers (OEMs) emerged as the biggest growth driver during the fiscal, rising 16.3% to ₹6.63 lakh crore ($75 billion), while the aftermarket expanded 9% to ₹1.08 lakh crore ($12.3 billion), supported by a growing vehicle parc and increasing formalisation of the repair ecosystem.

Exports remain resilient despite global uncertainty

Auto component exports grew 5% to $24 billion (₹2.12 lakh crore) despite a challenging global environment, with Europe recording the strongest growth. Engine components, along with drive transmission and steering systems, continued to account for more than half of outbound shipments. Imports, meanwhile, climbed 13% to $25.4 billion (₹2.24 lakh crore), reflecting higher demand for advanced technology products and specialised components sourced primarily from China, Japan and Germany.

Commenting on the industry's performance, Vinnie Mehta, Director General, ACMA, said FY26 reaffirmed the resilience of India's auto component sector, with strong domestic demand, continued investments in technology and growing confidence among global customers helping the industry deliver healthy growth despite international headwinds. He added that as global supply chains diversify, India is steadily strengthening its position as a trusted manufacturing and sourcing hub, while stressing that deeper localisation, innovation and supply-chain resilience will be critical for long-term competitiveness.

Industry sees strong long-term growth prospects

Looking ahead, Vikrampati Singhania, President, ACMA, said the industry's medium- to long-term outlook remains positive, driven by rising domestic demand, infrastructure-led economic growth, manufacturing investments, Free Trade Agreements and increasing global sourcing from India. However, he cautioned that geopolitical uncertainties, supply-chain disruptions, availability of rare earth magnets, logistics costs and raw material volatility will require sustained strategic focus. EV components accounted for 4.6% of domestic OEM supplies (excluding lithium-ion batteries), highlighting the sector's gradual transition towards electric mobility.