The Automotive Component Manufacturers Association of India (ACMA) revealed a robust 11.3 percent growth in India’s auto component industry for the first half of fiscal 2024-25, with turnover reaching INR 3,320 billion from April to September 2024.

ACMA Director General Vinnie Mehta highlighted the sector's resilience, supported by steady vehicle sales and exports. Domestic supplies to OEMs rose 11.2 percent to INR 2,830 billion, while exports expanded 7 percent to INR 933 billion, maintaining a USD 150 million trade surplus. Imports grew 4 percent to INR 920.5 billion. The aftermarket also recorded a 5 percent increase, reaching INR 474.16 crore.

“Despite global headwinds, the industry’s performance underscores its adaptability and strong fundamentals,” Mehta remarked.

ACMA President Shradha Suri Marwah noted the return of vehicle sales to pre-pandemic levels. “While two-wheeler sales surged, passenger and commercial vehicle sales remained moderate. Export challenges including rising freight costs, posed hurdles, yet the industry displayed resilience, maintaining stable value growth,” she stated.

Marwah emphasised ongoing investments in technology upgrades, localisation and higher value-added components to meet evolving market demands.

Officials also noted that North America and Europe each accounted for 31 percent of total exports. North America grew 8.3 percent, while Europe held steady. Asia, representing 22 percent, saw a 10 percent uptick.

Asia dominated with 65 percent of imports, followed by Europe (27 percent) and North America (7 percent). Imports from Asia rose 5.5 percent, while those from Europe increased 3.2 percent. North American imports declined by 8.3 percent.

The aftermarket’s 5 percent growth reflects the sector's evolution, driven by the rising penetration of e-commerce and growing demand in rural areas. The trend indicates a gradual shift towards an organised market structure.

ACMA’s review reinforces the auto component sector’s vital role in India’s economy, with strong growth prospects driven by strategic investments and market resilience.

Elaborating on the mood of the industry and outlook for the near to mid-term future, Marwah mentioned, “The festive season brought significant sales across most segments of the vehicle industry. However, reflecting on the past eight months of this fiscal year, while two-wheelers have shown promising growth, sales of passenger vehicles (PVs) and commercial vehicles (CVs) has been relatively moderate. On exports front, with geological challenges, delivery time and freight costs have once again gone up. That said, in value terms, the industry remains in robust health, signalling stability and resilience amidst evolving market dynamics. The components industry continues to make investments for purposes of higher value-addition, technology upgradation and localisation to stay relevant to both domestic and international customers.”

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German automotive supplier MAHLE has established an e-compressor production facility in Coimbatore, which it claims makes it the first company to manufacture the component in India.

The German firm has invested EUR 7 million in the site to produce e-compressors, which regulate thermal management, battery life, charging speeds and driving range in electric vehicles.

The production line has a capacity of over 300,000 e-compressors annually to supply domestic and international vehicle manufacturers. The launch creates 50 jobs, aligning with the Indian government's ‘Make in India 2.0’ manufacturing initiative.

The Coimbatore facility already produces starter motors, alternators, controllers and traction motors for two-wheelers and three-wheelers. Following the setup of an R&D facility in 2023 for product validation, MAHLE has outlined plans for women to represent 75 percent of the plant's total workforce by 2027.

The company entered India in 1958 through a piston manufacturing joint venture and now has expanded its operation across 15 locations in the country with 5,900 employees.

Ivan Lenehan, Vice-President, MAHLE Powertrain and Charging, India, China & East Asia, said, “India continues to play an increasingly important role in the global mobility transformation. This facility strengthens our presence in one of the world’s most dynamic automotive markets and reinforces our commitment to sustainable mobility solutions.”

Milind Mhaiskar, MD, MAHLE Electric Drives India, said, “This production facility underscores our focus on localisation and customer-centric innovation. The success of this project reflects the dedication of our teams and our collaborative approach with business partners.”

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Delhi NCR-based fluid transmission provider Imperial Auto has appointed Sandeep Bathla as its new Chief Global Operations Officer.

In his new role, Bathla will oversee manufacturing operations and direct programs to update automation, expand production capabilities and streamline supply-chain networks across company facilities. He will report to Vikram Wagh, Managing Director and Chief Executive Officer, Imperial Auto.

Bathla brings over three decades of industry experience to the role and previously served as Executive Director and Chief Operating Officer at Plasser India, following management roles at Blue Star, Motherson Sintermetal Technology and Eicher Tractors. He holds a Bachelor of Engineering in Mechanical Engineering from NIT Kurukshetra and a PhD from European International University, Paris.

Vikram Wagh said, “As Imperial Auto continues to scale its operations and strengthen its position in global markets, building a future-ready and high-performing manufacturing organisation will be critical. Sandeep brings extensive experience across manufacturing and the automotive industry, along with a strong understanding of operational excellence. His leadership will be instrumental in enhancing our manufacturing capabilities, improving responsiveness and creating greater value for our customers.”

The executive change aligns with Imperial Auto's plans to expand its international manufacturing footprint and engineering capabilities.

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Tier 1 automotive supplier Lumax Auto Technologies, part of the DK Jain Group, has further strengthened its management team by onboarding Ambarish Kumar Gupta as the new Vice-President – Operations.

Gupta comes with over two decades of experience in the automotive industry, with senior roles across financial operations.

The industry executive has worked with the likes of Forvia Faurecia, Marelli, Brose, Magna Steyr, Infosys, L&T Technology Services, BlueBinaries Engineering & Solutions and PGUB Management Consulting, among others.

In his new role, he will be responsible for advancing futuristic automotive electronics, strengthening operations and making the company future-ready.

Gupta will also support Lumax Auto Technologies’ innovation, technology and operational excellence roadmap.

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The Indian automotive component sector is projected to expand by approximately 8-9 percent in FY2027, according to a report by CareEdge Ratings. The market size is forecasted to reach INR 10,681 billion in FY2027, rising from INR 9,835 billion in FY2026.

The anticipated expansion is supported by domestic vehicle manufacturing, higher component content per vehicle, aftermarket replacement demand and ongoing integration with international supply chains.

The report states that total vehicle production in India increased from 23 million units in FY2022 to 34.7 million units in FY2026. Original equipment manufacturers (OEMs) generated 67 percent of sector revenues in FY2026, while exports and the aftermarket accounted for 22 percent and 11 percent, respectively.

On the other hand, auto component exports grew from INR 987 billion in FY2021 to INR 2,122 billion in FY2026, with expectations to reach INR 2,300 billion in FY2027. Component imports increased from INR 1,024 billion in FY2021 to INR 2,243 billion in FY2026, and are projected to rise to INR 2,431 billion in FY2027 due to continued reliance on semiconductors, battery cells and electronic systems.

Engine parts represented the largest product category at 24 percent of the component mix in FY2026, followed by suspension and braking at 17 percent and drive transmission and steering at 14 percent. However, product value is gradually shifting toward electronics, software systems and electric vehicle architectures. Total electric vehicle registrations rose from 170,000 in FY2020 to 2.45 million in FY2026, increasing electric vehicle penetration from 0.71 percent to 8.28 percent.

Ranjan Sharma, Senior Director at CareEdge Ratings, said, "India's auto component industry has emerged as an increasingly important part of the global automotive supply chain, supported by its manufacturing competitiveness, engineering capabilities, and expanding domestic market. With the auto ancillary industry market size expected to surpass Rs 10.6 trillion in FY27, the sector is well positioned to capture a larger share of global sourcing opportunities. Continued progress in localisation of critical components and development of advanced manufacturing capabilities will be key to enhancing value addition and strengthening India's long-term position in the global automotive ecosystem."

The aggregate revenue of the top 50 listed auto ancillary companies in India is expected to increase from INR 4,325 billion in FY2026 to INR 4,714 billion in FY2027. Sector capital expenditure is projected to reach INR 282 billion in FY2027 to support automation, capacity expansion and technology upgrades. Operating margins are expected to remain stable, managed through contractual cost pass-through mechanisms with vehicle manufacturers.

Government policy initiatives continue to influence capacity creation. The PLI-Auto Scheme recorded cumulative investments of INR 443.26 billion against an incentive outlay of INR 259.38 billion by FY2026. The PLI-ACC scheme for battery cell manufacturing attracted INR 51.80 billion in investments as of 31 May 2026, against an outlay of INR 181 billion. Additional demand support stems from the PM E-DRIVE scheme and the PM e-Bus Sewa scheme.

Geopolitical issues, freight rate fluctuations, and trade policies remain factors for export performance. The US represents the largest export destination, taking approximately 26 percent of Indian auto component exports, valued at INR 552 billion in FY2026.

Arti Roy, Associate Director at CareEdge Ratings, added, "CareEdge Ratings expects the Indian auto ancillary industry to grow by around 8-9% in FY27, supported by healthy OEM demand across major segments, increasing component content per vehicle, resilient replacement demand, higher localisation, and expanding global sourcing opportunities. The industry's ongoing transition towards electronics-intensive and cleaner mobility platforms is creating new opportunities across EV-linked components, advanced electronics, powertrain technologies, and other high-value automotive systems. Profitability is expected to remain broadly stable, although returns from ongoing investments in new capacities and advanced technologies are likely to materialise gradually. Companies with diversified customer relationships and geographical reach, wider product portfolios, strong engineering capabilities, prudent capital allocation, and the ability to adapt to the evolving component value pool are expected to remain better positioned."

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