Auto Components Industry Surges 7% to ₹3.56 Lakh Crore in H1 FY26
Overview
India's auto components industry expanded by 6.8% year-on-year, reaching ₹3.56 lakh crore ($41.2 billion) in the first half of FY26. Growth was driven by robust domestic demand, a strong aftermarket, and increased OEM sales. Exports climbed 9.3%, though imports rose faster, widening the trade deficit. Electric vehicles now represent 4.6% of OEM supplies.
Auto Components Sector Posts Robust H1 FY26 Growth
The Automotive Component Manufacturers Association (ACMA) announced on Wednesday that India's auto components industry achieved a 6.8% year-on-year growth, amounting to ₹3.56 lakh crore ($41.2 billion) in the first half of FY 2025-26. This performance was underpinned by steady domestic market demand, a resilient aftermarket, and sustained investments in capacity and technology upgrades.
OEM Sales and Aftermarket Strength
Sales to original equipment manufacturers (OEMs) saw a 7.3% increase, reaching ₹3.04 lakh crore ($35.2 billion). This growth was primarily propelled by strong sales in the passenger vehicle and light commercial vehicle segments. The aftermarket also demonstrated significant strength, growing by 9% year-on-year to ₹53,160 crore ($6.1 billion). This surge was attributed to a growing vehicle parc, increased formalization of repair services, and wider adoption of organized distribution channels.
Trade Dynamics and EV Transition
On the international trade front, auto component exports grew by 9.3% to $12.1 billion. However, imports also escalated by approximately 12.5% to $12.3 billion, resulting in a trade deficit of $180 million, a shift from the surplus recorded in the previous year. ACMA Director General Vinnie Mehta noted that this export performance was achieved despite global economic headwinds. The United States and Germany remained key export markets, while China, Japan, and Germany were significant import sources. The increasing adoption of electric vehicles was evident, with EVs comprising 4.6% of total supplies to OEMs, signaling a clear industry pivot towards new-age mobility solutions.
