TL;DR
India's auto component industry expects 6-7% growth in the next fiscal year, driven by strong domestic demand and beneficial international trade deals.
India's automotive components industry is poised for continued robust growth, with the Automotive Component Manufacturers Association of India (ACMA) projecting a 6-7% increase in the upcoming fiscal year. This optimistic outlook is fueled by strong domestic market performance across all vehicle segments and promising international opportunities arising from global supply chain realignments and new trade agreements.
The sector recorded a turnover of $80.2 billion in FY2025, marking an 8.2% year-on-year growth. Key drivers include the strong local market, enhanced by the Goods and Services Tax (GST) adjustments, and preferential access for Indian auto components in crucial markets due to recent trade pacts like the India-US interim trade framework and the India-EU Free Trade Agreement. These agreements are expected to boost exports and technology transfers, further solidifying India's position in the global automotive supply chain.
