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!

Dhoot Transmission has filed its Updated Draft Red Herring Prospectus - 1 (UDRHP - 1) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company, backed by Bain Capital, operates in the electrical and electronics component manufacturing sector.

The public offer comprises a fresh issue of equity shares with a face value of INR 2 each, aggregating up to INR 14 billion, alongside an offer for sale of up to 16,310,733 equity shares. Under the offer for sale, BC Asia Investments XV will divest up to 13,191,900 equity shares and Mangalam Capital will offer 31,18,833 equity shares.

Net proceeds from the fresh issue are scheduled for deployment across FY2027 and FY2028.

The company aims to utilise INR 4.93 billion for the repayment or prepayment of borrowings, and INR 2.72 billion for debt clearance within its subsidiaries, which include Dhoot Auto Components, Dhoot Electricals Systems, Dhoot Automotive Systems and Dhoot Transmission UK.

Furthermore, INR 1.50 billion is allocated to build manufacturing plants in Jhajjar, Haryana and Shoolagiri, Hosur, Tamil Nadu, with the remaining capital intended for acquisitions and corporate purposes.

Established in 1999, the firm is promoted by Rahul Radhavallabh Dhoot and BC Asia Investments XV, the latter having acquired a 49 percent stake in April 2025. Dhoot Transmission manufactures wiring harnesses, electronics sensors, switches and connectors for automotive and industrial clients.

In FY2025, the company held a 44.64 percent share of the Indian two-wheeler and three-wheeler wiring harness market by value, and over 70 percent of the electric variant market in the same category. Its customer base includes Bajaj Auto, TVS Motor Company, Honda Motorcycle and Scooter India and Royal Enfield, serving 477 clients in the nine months ending 31 December 2025.

As of December 2025, the company’s infrastructure consisted of 22 manufacturing facilities, three design centres and seven warehouses, with four additional plants under construction in India.

Financial records show revenue from operations increased from INR 21.25 billion in FY2023 to INR 34.44 billion in FY2025. During the same period, profit after tax rose from INR 1.63 billion to INR 3.53 billion, and EBITDA grew from INR 2.98 billion to INR 5.90 billion. Wiring harnesses generated INR 26.87 billion, representing 78 percent of total revenue in FY2025. Domestic sales in India accounted for approximately 90 percent of total revenue, whilst electric vehicle segments increased their revenue contribution from 8.05 percent in FY2023 to 25.2 percent in FY2025.

Comments (0)

ADD COMMENT

Link Copied!

Minda Corporation, the flagship company of Spark Minda, has announced its financial results for Q4 FY2026 and FY2026.

The company reported its highest-ever consolidated revenue of INR 61.85 billion, up 22.3 percent YoY, EBITDA of INR 7.21 billion and a profit after tax of INR 3.58 billion, with a margin of 5.8 percent.

For Q4 FY2026, the revenue was the highest-ever for a quarter at INR 17.04 billion, up 29 percent YoY, EBITDA of INR 2.03 billion and a net profit of INR 1.24 billion, with a margin of 7.3 percent.

The company attributed the robust growth to a strong product portfolio, an expanding customer base and a focus on product premiumisation.

In FY2026, Minda Corporation strengthened its position as a leading automotive supplier with two strategic global partnerships: Toyodenso Co, Japan, for the manufacturing and sale of advanced automotive switches, and a JV with Turntide Technologies, UK, for next-generation powertrain solutions for the electric vehicle industry.

The idea is to localise globally proven technologies for its customers in India, while offering premium solutions to meet domestic requirements.

Ashok Minda, Chairman and Group CEO, Spark Minda, said, “FY2026 was a year of consistent execution and steady progress for Minda Corporation. Despite a dynamic market environment, we delivered stable growth supported by demand across key vehicle segments, particularly in the 2W and CV categories. Policy measures such as GST rationalisation and the ‘Make in India’ initiative supported cost efficiency and improved affordability. We continued to invest in R&D and technology partnerships to strengthen our product offerings. Our focus remains on operational efficiency, customer relationships and disciplined financial management, as we work towards sustaining growth and creating long-term value for all stakeholders”.

Comments (0)

ADD COMMENT

Link Copied!

German technology company Bosch has received a major contract from Mercedes-Benz to supply electric motors into the 2030s for the premium carmaker’s next generation of electric powertrains.

The announcement follows a strong operational period in 2025 during which Bosch secured more than 70 e-mobility customer projects globally. The supplier currently provides electric vehicle technology and solutions to more than 50 automotive manufacturers worldwide.

The e-motors are built on a scalable platform architecture, allowing the length of the motor to be adjusted depending on the required power output. This flexibility permits integration into various vehicle models and axle variants.

Bosch claims its motors achieve up to 98 percent efficiency due to updated winding technology. The units utilise an innovative rotor oil cooling system to optimise heat dissipation. The compact design combines high efficiency and optimised cooling to reduce overall weight, installation space, and system costs.

The German tier 1 supplier targets the production of more than 7 million components for electric vehicles in 2026, with an existing manufacturing rate of approximately seven electric motors per minute globally.

For the Indian market Bosch has formed a joint venture with TataAutoComp Systems to develop, commercialise and manufacture e-axles specifically for the domestic market.

In China, Bosch serves more than 30 customers, working with almost all domestic car manufacturers alongside international brands operating in the region.

The company's portfolio spans from silicon carbide chips to complete powertrain setups, including ‘X-in-1’ solutions that bundle the electric motor, power electronics, transmission and energy management into a single system.

Markus Heyn, Member of the Bosch Board of Management and Chairman of Bosch Mobility, said, “The new order reaffirms our long-standing partnership with Mercedes-Benz and shows that we can successfully contribute our expertise to technologically demanding projects as well. We win over customers with our core competence of being able to develop and manufacture complex technology in large quantities with significant economies of scale worldwide. We deliver electric-driving solutions to all markets around the world.”

Marco Zehe, President of Bosch’s Electrified Motion division, added, “We already work with almost all Chinese car manufacturers, as well as with numerous international automakers operating in China.”

Comments (0)

ADD COMMENT

Link Copied!

Bengaluru-based electric vehicle start-up Emobi has announced that its upcoming model, the AKX, will be powered by the e-axle EV drive unit developed by Musashi Seimitsu Industry. This marks the second collaboration between the two companies, following the launch of the Kyari model in November 2025.

The partnership aims to address the specific demands of India’s electric two-wheeler and last-mile mobility sectors. The integration of Musashi’s e-Axle technology is designed to improve vehicle acceleration, torque and overall efficiency, providing performance that is competitive with internal combustion engine vehicles.

Naoya Nishimura, CEO, Musashi India & Africa Regions, said, “At Musashi, we are focused on developing next-generation mobility technologies that address the evolving needs of electric transportation. We are pleased to strengthen our collaboration with Emobi through the AKX, which is the second model to integrate our e-axle technology. India’s EV ecosystem presents significant opportunities, and we believe our e-axle solution can help enable performance, efficiency and a smoother riding experience tailored to the requirements of Indian consumers.”

Musashi’s e-Axle utilises proprietary reduction gear technology, drawing on the company's experience in transmission manufacturing.

The drive unit will come with high pick-up torque and smooth acceleration. It will be designed to provide quiet operation and reliability for urban and commercial use. It is said to be engineered for real-world Indian riding conditions.

Bharath Rao, CEO and Co-Founder, Emobi, added, “AKX has been designed with the needs of India’s electric mobility market in mind. The integration of Musashi’s e-axle technology enhances the vehicle’s acceleration, torque and overall riding experience, while staying focused on efficiency and reliability. This collaboration reflects our commitment toward building EV solutions that are practical, high-performing and ready for real-world Indian conditions.”

Comments (0)

ADD COMMENT

Link Copied!