India’s automotive components industry is expected to maintain its growth momentum in the upcoming fiscal year, with projections indicating an expansion of 8-10% in FY27. According to the Automotive Component Manufacturers Association (ACMA), the sector’s growth will be supported by strong domestic demand, increasing exports, and continued investments in technology and manufacturing capabilities.
The industry recorded a turnover of ₹7.60 lakh crore, equivalent to approximately $85.9 billion, marking a 12.7% increase in rupee terms compared with the previous fiscal year. Rising demand from original equipment manufacturers (OEMs), growth in replacement markets, and higher export orders contributed significantly to the sector’s performance.
ACMA stated that Indian automotive component manufacturers are improving their global competitiveness by focusing on localization, technological advancements, and better production standards. These efforts are helping companies strengthen their role in international automotive supply chains and meet the evolving requirements of global vehicle manufacturers.
Exports from the sector continued to show positive momentum, although imports remained high, particularly in areas such as electronic components and electric vehicle parts. This resulted in a trade deficit for the industry. ACMA emphasized that increasing domestic production of advanced components and reducing reliance on imports will be essential for achieving long-term growth.
The association also highlighted challenges faced by the sector, including workforce shortages, especially among small and medium-sized enterprises. Addressing these skill gaps will be important as the industry moves toward advanced manufacturing and emerging technologies.
Despite these challenges, industry leaders remain optimistic about the future of India’s auto component sector. The country’s expanding automobile market, supportive government policies, and rising global demand for reliable suppliers are expected to create new growth opportunities.
With increased focus on innovation, electric vehicle technologies, supply chain development, and advanced manufacturing practices, India is positioning itself as a major global hub for automotive components. Continued investments in these areas are likely to strengthen the country’s reputation as a preferred destination for international automotive sourcing and production.
