India Auto Component Industry Grows 12.7 Percent in FY26

The Automotive Component Manufacturers Association of India reported that the national auto component industry grew by 12.7 percent during the 2026 fiscal year. This expansion was primarily fueled by a 16.3 percent increase in supplies to original equipment manufacturers across the two-wheeler, commercial, and passenger vehicle segments. The aftermarket segment also saw growth, rising by 9 percent.

Despite a 5 percent increase in exports, largely directed toward Europe, imports grew by 13 percent. This imbalance resulted in a trade deficit of 1.37 billion USD, with the bulk of imports arriving from Germany, Japan, and China.

The association identified domestic demand, government initiatives regarding carbon neutrality, and ongoing infrastructure development as the primary drivers of this growth. However, the report warns that the industry faces several headwinds, including labor shortages, volatility in raw material pricing, and geopolitical tensions.