+
Auto Component Sector to Grow by Seven–Nine Per Cent in FY26
ECONOMY & POLICY

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

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

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

Next Story
Infrastructure Transport

Navi Mumbai Airport to Begin Operations by September 2025

Navi Mumbai International Airport Set for September LaunchMinister Uday Samant Says 95% of Work Complete; Phase 1 to Start with Limited CapacityDate: 08 July 2025 | Source: Hindustan TimesThe long-awaited Navi Mumbai International Airport is expected to begin operations in September 2025, according to Maharashtra Industries Minister Uday Samant. Although initially slated for an end-of-August launch, the project has faced minor delays, pushing the opening into the following month.“About 95 per cent of construction is complete. The first phase will become operational within the next two months..

Next Story
Infrastructure Urban

CCI Approves UBS–360 ONE Deal for PMS and Lending Assets

CCI Approves 360 ONE’s Acquisition of UBS India BusinessesTransaction Includes PMS, Lending Assets, and Equity StakeDate: 08 July 2025 | Source: PIB DelhiThe Competition Commission of India (CCI) has approved the acquisition of specific Indian businesses of UBS AG and its affiliates by 360 ONE Group entities, in a multi-tiered transaction that further expands 360 ONE’s financial services footprint.The deal involves the following:19. 360 ONE Portfolio Managers Ltd (360 Portfolio) acquiring the Portfolio Management Services (PMS) business of Credit Suisse Securities (India) Pvt Ltd20. 360 ON..

Next Story
Infrastructure Urban

Dholpur Gets First Science Centre to Spark Rural Innovation

Dholpur Science Centre Inaugurated to Empower Rural YouthMinister Jitendra Singh Says 'Science Belongs to the Last Mile'Date: 08 July 2025 | Source: PIB DelhiIn a landmark step towards decentralising scientific outreach, Dr. Jitendra Singh, Union Minister of Science and Technology, inaugurated the Dholpur Science Centre in Rajasthan. Developed by the Department of Biotechnology (DBT) in collaboration with the National Institute of Immunology (NII) and the National Science Centre, this initiative is part of the government’s push to bring science closer to India’s aspirational districts.Desi..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?