New Delhi: India’s auto component industry has opened FY26 on a steady note. Growth has not been flashy, but it has been consistent enough to keep suppliers busy across factories and workshops. Demand from carmakers has held up, replacement parts are selling well, and exports are still moving out despite global noise.
At the same time, there is a small warning sign. Imports are rising faster than exports. That shift has pushed the sector into a trade deficit, something the industry had avoided last year. It does not signal trouble yet, but it does tell a story about changing supply chains and rising dependence on overseas parts.
Auto component industry posts nearly 7 percent growth in H1 FY26
According to the Automotive Component Manufacturers Association of India, the industry grew 6.8 percent year on year in the first half of FY26. Total turnover reached Rs 3.56 lakh crore between April and September 2025, up from Rs 3.33 lakh crore in the same period last year.
Most of this growth came from domestic demand. Supplies to vehicle makers rose 7.3 percent to Rs 3.04 lakh crore. Passenger vehicles and light commercial vehicles did most of the heavy lifting. Production schedules stayed stable, and demand did not see major dips.
Electric vehicle parts are still a small piece of the puzzle, but their presence is growing. EV components made up 4.6 percent of OEM supplies. It is slow progress, but suppliers are clearly preparing for what lies ahead.
Aftermarket quietly becomes the star
The fastest growth came from the aftermarket. Revenue from spare parts and replacements jumped 9 percent to Rs 53,160 crore.
Anyone who owns an older car will understand this trend. More vehicles are staying on the road longer. Repairs are moving into organised service centres. Parts are easier to find. ACMA also pointed out that the aftermarket gives suppliers a more stable income when OEM demand moves up and down.
Exports rise, but imports rise faster
Exports remained a bright spot. Auto component exports grew 13 percent year on year to Rs 1.05 lakh crore in H1 FY26. This came despite supply chain disruptions, cost pressures, and softer demand in some global markets. The United States and Germany stayed among the top buyers of Indian components.
Imports, however, grew even faster. They jumped 15.8 percent to Rs 1.07 lakh crore. China, Japan, and Germany remained the main sources. This pushed the industry into a trade deficit of around Rs 1,630 crore, compared to a surplus of Rs 839 crore last year.
Industry view: steady, but not easy
ACMA Director General Vinnie Mehta said the first half performance shows the underlying strength of India’s automotive ecosystem. Growth has come from both OEM supplies and the aftermarket, though rising imports have tipped the trade balance into a small deficit.
ACMA President-Designate Sriram Viji flagged challenges ahead. He pointed to geopolitical risks, supply chain stress, and cost pressures. He also highlighted concerns around access to critical materials like rare earth magnets and the need to improve supply chain resilience.