The Indian automotive components industry, which is a critical partner for the domestic as well as the global automotive industry is expected to grow by 8-10 percent in FY2026 according to ICRA.

The estimates are based on the company’s assessment of about 46 auto ancillaries with aggregate annual revenue of over INR 3,000 billion in FY2024, which accounted for about 50 percent of the industry.

For FY2025, the industry is expected to report 7-9 percent growth, with operating margines to be around 11-12 percent for FY2025 and FY2026. The confidence comes on the back of the industry benefitting from operating leverage, higher content per vehicle and value addition while remaining vulnerable to any significant unfavourable movements in commodity prices and foreign exchange rates.

The study stated that the ‘disruption along the Red Sea route has resulted in a surge in ocean freight rates by 2-3 times in CY2024 compared to CY2023. Any further sharp and sustained increase in ocean freight rates could also have a bearing on margins for auto component suppliers having significant exports/imports.’

In FY2026, ICRA estimates that the auto component sector will pump in INR 250-350 billion investment towards enhancing capacity, localisation/capability development and new technologies (including EVs) among others.

The big opportunity in EV segment can be seen on the fact that at present only 30-40 percent of the supply chain in India is localised, which includes traction motors, control units and BMS. On the other hand, EV battery cells that make up for almost 30-40 percent of an EV cost continues to be imported.

Vinutaa S, Vice President and Sector Head – Corporate Ratings, ICRA, said: "The domestic auto component industry is in a transitory phase with the automotive players increasingly focusing on sustainability, innovation and global competitiveness. Demand from domestic original equipment manufacturers (OEMs), which constitutes over half of the industry revenues, is estimated to grow by 7-9 percent in FY2025 and 8-10 percent in FY2026. Part of the growth would stem from premiumisation of components and higher value addition. Growth in replacement demand is pegged at 5-7 percent in FY2025 and 7-9 percent in FY2026, driven by increase in vehicle parc, higher average age of vehicles/used car purchases, preventive maintenance and growth in organised spare parts, among other reasons.”

“Exports, which account for close to 30 percent of the industry’s revenues, are likely to be impacted by subdued vehicle registration growth in the target markets. However, factors like rising supplies to new platforms because of vendor diversification initiatives by global OEMs/Tier-Is and higher value addition, partly stemming from increase in outsourcing, augur well for Indian auto component suppliers.”

Metal Castings & Forgings

ICRA finds that Indian component suppliers in the metal castings and forgings also have a bigger opportunity on the back of plants closure in European Union on the back of viability issues.

The report stated that ‘ageing of vehicles and sale of more used vehicles in global markets would aid in exports for the replacement segment. The impact of any import tariffs on Indian auto component exports remains monitorable.’

In the medium-to-long term, premiumisation, localisation, EVs and stringent regulatory norms continue to offer tailwind for the Indian automotive industry.

“ICRA’s interaction with large auto component suppliers indicates that the industry is estimated to spend INR 150-200 billion in FY2025 and another INR 250-300 billion in FY2026. The incremental investments would be made towards new products, product development for committed platforms and development of advanced technology and EV components, apart from capex for capacity enhancements and upcoming regulatory changes. R&D, though, is still at an average of 1-3 percent of operating income, significantly lower than the global counterparts. ICRA expects auto ancillaries’ capex to hover around 7-8 percent of operating income over the medium term, with the PLI scheme also contributing to incremental capex towards advanced technology and EV components,” he concluded.

Representational Image courtesy: Ronaldo Galeano/Pexels 

Comments (0)

ADD COMMENT

Link Copied!

Pune-headquartered automotive supplier Varroc has appointed Avinash Chintawar as its new Chief Operating Officer (COO) for Business I, effective 15 October 2025. He will report to Arjun Jain, Whole Time Director & CEO – Business I.

In his new role, Chintawar will oversee the Operations Vertical within Business I, with a focus on strengthening efficiencies and performance.

Prior to joining, Varroc, Chintawar served as Managing Director of Bosch Chassis Systems India and as Chairman of Bosch India Foundation. He previously held leadership positions within the Bosch Group, including Director of Operations at Robert Bosch Bamberg (Germany) and Managing Director at Bosch Electrical Drives India. He holds a Bachelor of Engineering from Visvesvaraya National Institute of Technology.

Jain, said, “We are delighted to welcome Avinash to the Varroc leadership team. His extensive experience and deep understanding of achieving operational excellence align perfectly with our needs as we drive the next phase of our growth. I am confident that under his leadership our operation will scale new heights of efficiency and sustainability.”

Chintawar, said, “I am excited to join Varroc at a time when the industry is undergoing such dynamic change. I look forward to working closely with the team to enhance operational excellence and contribute to its vision of sustainable and future-ready growth.”

Comments (0)

ADD COMMENT

Link Copied!

German tier 1 supplier ZF Group has secured a significant contract to supply its 430mm heavy-duty clutch systems to one of India’s leading commercial vehicle manufacturers.

The clutch systems, the company shared, is custom-engineered and manufactured locally, specifically adapted to meet the rigorous demands of Indian operating conditions and will power the OEM's higher horsepower engine platforms for both domestic and select export models.

The agreement, signed in May 2025, involves the supply of several thousand units, with the Start of Production (SOP) scheduled for mid-2026. The clutches will be produced at ZF's Chakan plant in Pune, reinforcing the Group's strategy to strengthen its regional manufacturing capabilities and commitment to localisation in India.

The new clutch system is designed for robust performance and features advanced lining materials that promise up to 20 percent longer clutch life, aiming to reduce maintenance costs and optimise the total cost of ownership for fleet operators. It is also designed to be compatible with both Manual Transmission (MT) and Automated Manual Transmission (AMT) systems.

Akash Passey, President - Region India, ZF Group, said, “ZF’s strategic focus on localisation and innovation for the Indian market, is reconfirmed with this business win. With our globally proven technological expertise and leveraging the strong local manufacturing footprint in India, our customers can access advanced technologies that meet global standards while being tailored for their markets. This win highlights our commitment to strengthening India’s role as a key hub in ZF’s commercial vehicles business.”

Paramjit Singh Chadha, Senior Vice President - CVS Division (India), ZF Group, said, “This business win is a strong endorsement of our advanced heavy-duty clutch technology which perfectly addresses the demanding operating conditions in India. This 430mm clutch system offers superior durability, optimised performance and compatibility with future-ready driveline architectures, including AMT. By localising production at our Chakan facility, we reinforce our commitment to the ‘Make in India’ vision and supporting our customers’ growth ambitions for both domestic and export markets.”

Comments (0)

ADD COMMENT

Link Copied!

French automotive component supplier OPmobility is accelerating its growth in India, with the strategic goal of more than doubling its sales by 2030.

The Group recently inaugurated its new facility Badhalwadi, Maharashtra and has commenced construction of another plant in Kharkhoda, Haryana. It already operates five plants in the country, is strengthening both its production footprint and its engineering and digital capabilities.

OPmobility is structured into four complementary business groups: exterior and lighting systems, complex modules, energy storage systems and battery and hydrogen electrification solutions, allowing it to offer a comprehensive range of mobility solutions. The company is a significant global player, reporting an economic revenue of EUR 11.6 billion in 2024. To meet the challenges of sustainable mobility, OPmobility relies on its 38,900 employees operating across a vast network of 150 plants and 40 R&D centres worldwide.

The Badhalwadi site is OPmobility’s first in India to integrate production capacities for both exterior systems and energy storage systems in one location. Furthermore, the facility is equipped with solar panels that supply 35 percent of its energy needs and predominantly employs women.

The Kharkhoda plant, which broke ground in August 2025, will focus on producing energy storage systems and is scheduled to begin operations in early 2026. This expansion comes as India's vehicle output is forecast to grow by an average of per year between 2025 and 2030. Currently, over one in three vehicles sold in India is equipped with OPmobility components.

Beyond manufacturing, OPmobility is boosting its engineering and digital presence to meet growing demand from both local and global customers. This includes operating four R&D centres that support both the Indian business and worldwide markets. The Group has also established an OP’nSoft software centre in Bengaluru, Karnataka, to enhance its dedicated software entity.

Laurent Favre, Chief Executive Officer, OPmobility, said, "India is a strategic country for OPmobility, with a fast-growing automotive industry and as a platform of skilled workforce. Having developed strong historical partnerships with international and Indian automotive manufacturers, who benefit from a dynamic domestic and international demand, the Group aims at more than doubling its sales in the country by 2030. This will notably contribute to one of the pillars of our strategy, which is the geographical diversification of our sales. The reinforcement of our engineering, digital and software capacities in the country allows us to improve our overall competitiveness in engineering in all our countries and to continue to enhance our performance.”

Comments (0)

ADD COMMENT

Link Copied!

Laufenberg GmbH, a specialist in coating technologies, and WEVO-CHEMIE GmbH, an expert in polyurethane, epoxy and silicone materials, have jointly introduced an innovative manufacturing process that promises to enhance the scalability and reduce the costs of hydrogen technology components. This new method addresses the limitations of conventional sealing production for fuel cell and electrolyser stacks, which has traditionally depended on prefabricated flat gaskets or molded O-rings. These established techniques are inherently discontinuous, requiring individual moulds that result in a manufacturing process that is both time-intensive and costly. The collaborative solution from Laufenberg and Wevo enables the continuous, high-throughput, roll-to-roll production of flat elastomer gaskets. This breakthrough offers manufacturers a scalable path to lower expenses while simultaneously facilitating more efficient and automated production processes for critical hydrogen infrastructure like fuel cells, electrolysers and redox flow batteries.

The core of this new technique involves applying WEVO’s specially formulated two-component liquid elastomers onto a carrier film using Laufenberg’s precision coating equipment. This coated material then travels through a multi-zone curing oven, where temperature is meticulously controlled. An optional pre-curing stage with infrared emitters can be employed to accelerate the process and eliminate air bubbles. The line operates at variable speeds, offering immense production flexibility and the final product is supplied either on large rolls or as precision-die-cut gaskets, ready for installation.

This advanced process accommodates a wide range of specifications, producing pure elastomer seals with thicknesses from a minimal 20 micrometres up to two millimetres. By combining the elastomer with a carrier film, hybrid seals can be created with total thicknesses reaching four mm, catering to demands for both ultra-thin and highly robust sealing solutions. The carrier film can either be removed after curing or remain integrated to provide enhanced structural stability, which is particularly beneficial for softer sealant materials.

Leveraging WEVO’s long-standing expertise in developing low-permeation silicones and polyurethanes, the material properties can be precisely tailored to the application. This joint development marks a significant evolution from traditional liquid dispensing methods towards the efficient production of pre-fabricated, high-performance gaskets. For manufacturers, this innovation represents a critical step forward in streamlining the production of essential components for the hydrogen economy. Representatives from both companies will be available at upcoming industry events to discuss integration and material selection.

Comments (0)

ADD COMMENT

Link Copied!