According to Vinnie Mehta, Director General, ACMA, as the global supply chains continue to diversify, India is steadily strengthening its position as a trusted manufacturing and sourcing partner for the global automotive industry.
Driven by robust domestic demand, higher vehicle production, and sustained investments in capacity, the Indian auto components sector recorded a turnover of ₹7.60 lakh crore ($85.9 billion) in FY205-26, registering a growth of 12.7 per cent as compared with around ₹6.74 lakh crore in the previous fiscal.With the continued domestic demand and exports, despite the geopolitical headwinds, the sector is expected to grow around 8-10 per cent in the current fiscal, Automotive Component Manufacturers Association of India (ACMA), said on Tuesday.Sharing the findings of the Industry Performance Review for FY2025-26, the apex body representing India’s auto component industry, said that over the last five years, the industry has more than doubled in size, expanding at a compound annual growth rate (CAGR) of 17 per cent, reaffirming India’s emergence as a globally competitive automotive manufacturing base.“The medium-to-long-term outlook for the Indian auto component industry remains positive. Growing domestic demand, infrastructure-led economic growth, expanding manufacturing investments, deeper global integration through Free Trade Agreements (FTAs) and increasing global sourcing from India are creating significant opportunities for the sector,” Vikrampati Singhania President, ACMA and Vice Chairman & MD, JK Fenner (India) said.He said the industry remains committed to investing in advanced manufacturing, localisation, digitalisation and sustainable mobility solutions to enhance India’s global competitiveness.“At the same time, geopolitical developments, supply-chain disruptions, the availability of critical minerals such as rare earth magnets, logistics costs and raw material volatility will require continued strategic focus,” Singhania added.Sourcing partnerAccording to Vinnie Mehta, Director General, ACMA, as the global supply chains continue to diversify, India is steadily strengthening its position as a trusted manufacturing and sourcing partner for the global automotive industry.“While imports of advanced technology products and specialised components increased during the year, they also underline the next opportunity before us - to deepen localisation, accelerate technology development and move further up the value chain,” Mehta said adding that the industry’s long-term competitiveness will increasingly be defined by innovation, quality, sustainability and supply-chain resilience.Published on July 7, 2026
