India Auto Component Industry Turnover Rises 12.7% To ₹7.60 Trillion In FY26

India's auto component industry recorded a turnover of ₹7.60 trillion ($85.9 billion) in FY26, according to the Automotive Component Manufacturers Association of India (ACMA), according to a report by Business Standard. The industry registered growth of 12.7% in rupee terms compared with FY25, driven by strong domestic demand, higher vehicle production, and continued investments in technology and capacity.

ACMA noted that the sector has more than doubled in size over the past 5 years, achieving a compound annual growth rate (CAGR) of 17%. The performance also reflected steady export growth despite a challenging global environment.

India Auto Component Industry Turnover in FY26

The Indian auto component industry achieved a turnover of ₹7.60 trillion during FY26, marking a 12.7% increase over the previous financial year. According to ACMA, the growth was supported by robust demand across domestic automotive segments and rising vehicle production.

Continued investments in manufacturing capacity and technological advancements also contributed to the industry's expansion. Over the last 5 years, the sector has grown at a CAGR of 17%, reinforcing India's position in global automotive manufacturing.

OEM Supplies and Aftermarket Revenue Growth

Supplies to original equipment manufacturers (OEMs) increased 16.3% year-on-year to ₹6.63 trillion ($75 billion) in FY26. This growth was largely supported by higher vehicle production across multiple categories.

The aftermarket segment also recorded steady expansion, rising 9% to ₹1.08 trillion ($12.3 billion). ACMA attributed the increase to a growing vehicle population and the ongoing formalisation of the vehicle repair and maintenance ecosystem.

Auto Component Exports and Imports in FY26

Exports of auto components rose 5% to $24 billion (₹2.12 trillion) during FY26. Europe emerged as the strongest-performing export market, while engine components and drive transmission and steering products accounted for more than half of the exports.

Imports increased 13% to $25.4 billion (₹2.24 trillion), reflecting higher demand for advanced technologies and specialised components. China, Japan, and Germany remained the leading sourcing destinations for imported auto components.

EV Components and Industry Localisation Focus

Electric vehicle component supplies accounted for 4.6% of domestic OEM supplies during FY26, excluding lithium-ion batteries. ACMA highlighted that rising imports of advanced technology products present opportunities for greater localisation and technology development within India.

Industry leaders emphasised the importance of innovation, quality, sustainability, and supply-chain resilience in strengthening long-term competitiveness. The sector is also focusing on advanced manufacturing, digitalisation, and value addition to support future growth.

Read More: India Auto Sales June 2026.

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Conclusion

The Indian auto component industry delivered strong performance in FY26, with turnover reaching ₹7.60 trillion and growing 12.7% year-on-year. Growth was supported by increased OEM demand, steady aftermarket expansion, and higher exports despite global uncertainties.

The industry also witnessed rising imports of specialised components and a growing contribution from EV-related supplies. According to ACMA, continued investments, localisation efforts, free trade agreements, and expanding global sourcing opportunities are supporting India's position as a major automotive manufacturing and sourcing hub.

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