Indian Auto Component Industry Powers Through Global Headwinds with 6.8% Growth

The Indian auto component industry grew by 6.8% to Rs 3.56 lakh crore from April-September FY26 supported by domestic demand, with a 9% aftermarket growth and OEM sales rising 7.3%. Exports increased by 9.3% despite global challenges, but imports led to a USD 180 million trade deficit.

The Indian auto component industry has reported a significant 6.8% year-on-year growth, reaching a turnover of Rs 3.56 lakh crore in the April-September period of FY26, according to the Automotive Component Manufacturers Association (ACMA). This growth was fueled by strong domestic demand, a robust aftermarket, and strategic investments.

During the period, sales to OEMs surged by 7.3% to Rs 3.04 lakh crore, with passenger vehicles and light commercial vehicles leading the charge. The aftermarket sector also demonstrated substantial growth, increasing by 9% to Rs 53,160 crore, driven by a burgeoning vehicle population and enhanced repair and maintenance channels.

On the international trade front, exports of auto components rose by 9.3% to USD 12.1 billion, despite various global economic challenges. However, imports grew by 12.5% to USD 12.3 billion, resulting in a minor trade deficit. This underscores the industry's emphasis on localisation and technological upgrades to prepare for future growth.

(With inputs from agencies.)