AUTO COMPONENT INDUSTRY GROWS 7% IN H1 FY26 AS OEM SUPPLIES, EXPORTS RISE; IMPORTS OUTPACE SHIPMENTS

India's auto component industry grew nearly 7% year-on-year (y-o-y) in the first half of FY26, supported by steady domestic demand and resilient export performance, even as faster growth in imports pushed the sector into a trade deficit.

According to the Industry Performance Review released by the Automotive Component Manufacturers Association of India, the industry's turnover increased to Rs 3.56 lakh crore during April-September 2025, compared with Rs 3.33 lakh crore in the same period last year, resulting in a growth of 6.8% y-o-y.

Growth was driven primarily by higher supplies to vehicle manufacturers and a strong aftermarket, while exports continued to expand despite global headwinds.

Domestic supplies to original equipment manufacturers (OEMs) rose 7.3% y-o-y to Rs 3.04 lakh crore in H1 FY26. ACMA said this growth was led mainly by the passenger vehicle (PV) and light commercial vehicle (LCV) segments, reflecting stable production schedules and sustained demand.

Electric vehicle (EV) components accounted for 4.6% of total OEM supplies, highlighting the gradual transition towards new mobility technologies within the domestic ecosystem.

The aftermarket emerged as the fastest-growing domestic segment during the period. Revenues from the aftermarket rose 9% y-o-y to Rs 53,160 crore, supported by a growing number of vehicles on the road, increasing formalisation of the repair and maintenance ecosystem and deeper penetration of organised distribution channels.

ACMA noted that the aftermarket continues to provide a relatively stable revenue stream for suppliers, helping offset volatility in OEM-led demand cycles.

On the external trade front, India's auto component exports grew 13% y-o-y to Rs 1.05 lakh crore in the first half of FY26. This growth was achieved despite supply-chain disruptions, raw material cost pressures and weakening aggregate demand in some global markets. The United States and Germany remained among the key export destinations for Indian component manufacturers during the period.

Imports, however, rose at a faster pace than exports. Auto component imports increased 15.8% y-o-y to Rs 1.07 lakh crore in H1 FY26. This resulted in a trade deficit of around Rs 1,630 crore, compared with a trade surplus of Rs 839 crore in the same period last year. China, Japan and Germany continued to be the leading sources of imports.

Commenting on the industry's performance, ACMA Director General Vinnie Mehta said, "H1 FY26 performance reflects the underlying strength of India's automotive ecosystem, with growth across OEM supplies and the aftermarket. On the trade side, export growth has remained healthy, though imports have risen at a faster pace, leading to a marginal trade deficit."

ACMA President-Designate Sriram Viji said the operating environment remains challenging, shaped by geopolitical uncertainties, supply-chain disruptions and cost pressures. He added that addressing issues such as the availability of critical materials, including rare-earth magnets, and improving supply-chain resilience will be important for sustaining long-term growth.

2026-01-14T14:02:28Z