Auto Component Sector to Grow by Seven–Nine Per Cent in FY26

26 May 2025 CW Team

India's automotive component sector is projected to register a revenue growth of seven to nine per cent in the financial year 2025–26, according to Crisil Ratings. This growth mirrors the previous fiscal and will be driven by continued demand for two-wheelers and passenger vehicles, especially utility vehicles which account for nearly half the revenue.

The report notes a moderate recovery in commercial vehicle and tractor sales, while the aftermarket segment is expected to grow steadily at five to seven per cent. However, weaker demand in the United States and Europe—accounting for approximately sixty per cent of exports—poses challenges.

Crisil anticipates stable operating margins between twelve and 12.5 per cent, aided by rising contributions from high-margin components like infotainment systems and advanced driver-assistance systems. Lower input costs for steel, aluminium, and plastics will also support profitability. Nonetheless, new tariffs by the United States could impact margins for exporters.

Despite a capital expenditure of Rs 220 billion, mostly to enhance electric vehicle (EV) capabilities, the sector’s credit outlook remains stable, supported by strong cash flows and limited borrowing. EVs currently represent only four per cent of passenger vehicle volume, contributing marginally to revenue.

Source:Financial Express

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..