TL;DR
The Indian auto components industry expects 8-10% growth in FY27, despite a trade deficit in FY26 due to rising imports of EV components.
India's auto components industry is projected to achieve 8-10% growth in FY27, driven by sustained domestic demand and robust exports, despite prevailing geopolitical uncertainties. The Automotive Component Manufacturers Association (ACMA) reported that the industry's turnover for FY26 reached ₹7.60 lakh crore (US$ 85.9 billion), marking a 12.7% increase over the previous fiscal year.
However, the sector experienced a trade deficit for the first time in three years in FY26, as imports of auto components, particularly for electronics and electric vehicle parts, outpaced exports. Imports rose by 13% to $25.4 billion, while exports increased by 5% to $24 billion, resulting in a deficit of $1.37 billion. ACMA emphasizes that increased localization of advanced components and deeper integration into global supply chains will be crucial for reducing import dependence and fostering long-term growth.
