Automotive Component Manufacturers Association of India (ACMA) has announced the findings of its Industry Performance Review for the first half of FY 2025–26 (April–September 2025), reporting steady growth for the Indian auto component sector despite global and domestic headwinds. Industry turnover rose by 6.8 % year-on-year to ₹3.56 lakh crore (USD 41.2 billion), supported by stable domestic demand, a resilient aftermarket and continued investments in capacity expansion, localisation and technology upgrades.
Supplies to vehicle manufacturers grew by 7.3 % to ₹3.04 lakh crore (USD 35.2 billion), driven mainly by the passenger vehicle and light commercial vehicle segments. The aftermarket delivered a stronger performance, growing 9 % to ₹53,160 crore ($ 6.1 billion), aided by a growing vehicle population, increased formalisation of repair and maintenance activities, and deeper penetration of organised service channels.
On the trade front, auto component exports rose by 9.3 % to $ 12.1 billion during the period, even as imports increased at a faster pace of around 12.5 % to $ 12.3 billion. This resulted in a trade deficit of USD 180 million, compared to a surplus of $ 150 million in H1 FY25. ACMA noted that export growth was achieved despite challenges such as supply-chain disruptions, raw material cost pressures and weakening demand in key global markets. The United States and Germany remained the top export destinations, while China, Japan and Germany continued to be the leading sources of imports.
Electric vehicles accounted for 4.6 % of total supplies to OEMs, reflecting the industry’s gradual shift towards new-age mobility technologies.
Commenting on the performance, Mr. Vinnie Mehta, Director General, ACMA, said the first-half results highlight the underlying strength of India’s automotive ecosystem, with growth across both OEM supplies and the aftermarket. He noted that while export momentum remained healthy, higher import growth led to a marginal trade deficit, prompting the industry to focus on deeper localisation, capacity expansion and closer stakeholder collaboration in preparation for the next phase of growth.
Mr. Sriram Viji, President-Designate, ACMA and Managing Director, Brakes India Pvt Ltd., said that although domestic demand remains broadly stable, the operating environment continues to be influenced by geopolitical uncertainties, supply-chain disruptions and cost pressures. He added that securing critical materials, including rare-earth magnets, and strengthening supply-chain resilience will be crucial for sustaining long-term growth.
Sharing his outlook, Mr. Vikrampati Singhania, President, ACMA and Managing Director, JK Fenner (India) Ltd., said demand in the first half was largely supported by domestic fundamentals, while the second half of FY26 is expected to benefit from improved retail sentiment, seasonal demand, policy support and infrastructure-led activity. He noted that the reduction in GST on select vehicle categories post-September could boost demand, particularly in passenger vehicles and two-wheelers, with positive spillovers for the component sector. However, he cautioned that geopolitical risks, rising freight costs, raw material volatility and limited availability of critical inputs remain key challenges for the industry.
