Automotive Component Manufacturers Association of India (ACMA) has said that the Indian automotive components sector is projected to register 8-10% growth in the current fiscal (FY27), driven by sustained domestic demand and robust exports despite geopolitical uncertainties. In FY26, the industry recorded a turnover of Rs 7.60 lakh crore ($85.9 billion), registering 12.7% growth in rupee terms compared with the previous fiscal.
According to the ACMA, the sector is well placed to further strengthen India's position as a preferred global hub for automotive manufacturing and component sourcing. The industry's strong FY26 performance was driven by robust domestic demand, higher vehicle production, sustained investments in capacity and technology and steady export growth despite a challenging global environment. Over the last five years, the industry has more than doubled in size, registering a compound annual growth rate (CAGR) of 17% between FY21 and FY26, reflecting India's growing role as a global automotive manufacturing hub.
It further stated that during FY26, exports of auto components rose 5% to $24 billion (Rs 2,12,176 crore). It said Europe recorded the strongest growth, while engine components and drive transmission & steering continued to account for over half of exports. On the other hand, imports grew 13% to $25.4 billion (Rs 2,24,287 crore), driven by higher demand for advanced technologies and specialised components. China, Japan and Germany continued to be the key sourcing destinations. It also noted that electric vehicle components, excluding lithium-ion batteries, contributed 4.6% of domestic OEM supplies during the fiscal.
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