+
India Auto Component Sector Grows 12.7 per cent in FY26
ECONOMY & POLICY

India Auto Component Sector Grows 12.7 per cent in FY26

The Automotive Component Manufacturers Association of India (ACMA) reported that India’s auto component industry grew 12.7 per cent in FY26, led by a 16.3 per cent rise in supplies to original equipment manufacturers as vehicle production strengthened across passenger vehicles, commercial vehicles and two-wheeler segments. The aftermarket segment expanded nine per cent, supported by a growing vehicle base and greater formalisation of repair and maintenance services. Supplies to the electric vehicle segment accounted for four point six per cent of original equipment manufacturer sales.

ACMA said exports rose five per cent while imports climbed 13 per cent, producing a trade deficit of United States dollar (USD) 1.37 bn. Higher shipments to Europe led export growth amid expectations of a favourable free trade agreement and increased procurement by European manufacturers. Engine components and drive transmission and steering systems accounted for over half of exports while imports were led by supplies from China, Japan and Germany.

The report identified tailwinds such as policy focus on carbon neutrality, expansion of free trade agreements, infrastructure development and rising domestic vehicle demand. It also cited increased investment, capacity expansion and the entry of new players in the mobility space as supportive factors. At the same time the association warned of geopolitical uncertainties including the Russia–Ukraine conflict, tensions in West Asia and trade restrictions that could affect markets.

Other challenges highlighted included limited availability of rare earth magnets, raw material price volatility, higher insurance and freight costs and shortages of skilled labour. The report urged monitoring of supply chain risks and policy measures to bolster local manufacturing and improve trade balances through diversification and investment. ACMA recommended targeted incentives for domestic producers.

The Automotive Component Manufacturers Association of India (ACMA) reported that India’s auto component industry grew 12.7 per cent in FY26, led by a 16.3 per cent rise in supplies to original equipment manufacturers as vehicle production strengthened across passenger vehicles, commercial vehicles and two-wheeler segments. The aftermarket segment expanded nine per cent, supported by a growing vehicle base and greater formalisation of repair and maintenance services. Supplies to the electric vehicle segment accounted for four point six per cent of original equipment manufacturer sales. ACMA said exports rose five per cent while imports climbed 13 per cent, producing a trade deficit of United States dollar (USD) 1.37 bn. Higher shipments to Europe led export growth amid expectations of a favourable free trade agreement and increased procurement by European manufacturers. Engine components and drive transmission and steering systems accounted for over half of exports while imports were led by supplies from China, Japan and Germany. The report identified tailwinds such as policy focus on carbon neutrality, expansion of free trade agreements, infrastructure development and rising domestic vehicle demand. It also cited increased investment, capacity expansion and the entry of new players in the mobility space as supportive factors. At the same time the association warned of geopolitical uncertainties including the Russia–Ukraine conflict, tensions in West Asia and trade restrictions that could affect markets. Other challenges highlighted included limited availability of rare earth magnets, raw material price volatility, higher insurance and freight costs and shortages of skilled labour. The report urged monitoring of supply chain risks and policy measures to bolster local manufacturing and improve trade balances through diversification and investment. ACMA recommended targeted incentives for domestic producers.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Emiza Expands Bhiwandi Fulfilment Capacity by 2.32 Lakh Sq Ft

Emiza, a leading third-party logistics (3PL) provider, has expanded its Mumbai operations with the launch of two new fulfilment facilities in Bhiwandi, adding a combined capacity of 2.32 lakh sq ft to its network.The new facilities, spread across 75,000 sq ft and 1,57,000 sq ft, mark Emiza’s fifth and sixth warehouses in the Mumbai region. The expansion strengthens the company’s fulfilment infrastructure in Western India amid the rapid growth of India’s digital commerce ecosystem.With increasing online consumption, wider product categories and rising customer expectations for faster deli..

Next Story
Infrastructure Urban

Ingersoll Rand Showcases Air Solutions for Semiconductor Sector

Ingersoll Rand will showcase its advanced compressed air solutions for India’s growing semiconductor ecosystem at SEMICON India 2026, scheduled from September 17–19 at Yashobhoomi, New Delhi.The company will display its portfolio of oil-free compressors, centrifugal compression technologies and advanced air treatment systems at Stall No. 1156, Hall No. 1. The solutions are designed to address the stringent air quality, reliability and efficiency requirements of semiconductor manufacturing applications.With India accelerating investments across semiconductor manufacturing, packaging, equipm..

Next Story
Infrastructure Energy

RECPDCL Transfers Musalgaon Transmission SPV to MSETCL

REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited, has handed over Musalgaon Power Transmission Limited, a project-specific Special Purpose Vehicle (SPV), to Maharashtra State Electricity Transmission Company Limited (MSETCL).MSETCL emerged as the successful bidder through the Tariff-Based Competitive Bidding (TBCB) process conducted by RECPDCL, the Bid Process Coordinator, for developing Maharashtra’s intra-state transmission project on a Build, Own, Operate and Transfer (BOOT) basis.The SPV was handed over by Shri Ratnesh Kumar, General Manag..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code