India’s auto component industry recorded a turnover of Rs 6.73 lakh crore ($80.2 billion) in FY25, according to ACMA’s (Automotive Component Manufacturers Association of India’s) annual review. This reflects a 9.6% year-over-year growth. Additionally, there’s a 14% CAGR since FY20, nearly doubling the industry’s size over five years.

Exports rose 8% to $22.9 billion (Rs 1.92 lakh crore). Imports increased 7.3% to $22.4 billion. The industry posted a trade surplus of $453 million, up from $300 million the previous year. This indicates improved global competitiveness and localisation.

Domestic OEM supplies stood at Rs 5.7 lakh crore, growing 10% due to increased vehicle production. There was also higher demand for premium components in larger vehicles.

The aftermarket segment also grew 6% to Rs 99,948 crore ($11.8 billion). This growth was driven by the used vehicle market, organised repair services, and rural demand supported by e-commerce.

Regionally, exports to North America increased by 8.4%, Asia rose by 15.1%, but Europe experienced a 2.1% decline. The top exported components included engine parts, suspension systems, braking systems, and chassis.

Asia remained the major import source, contributing nearly two-thirds of the $22.4 billion imports.

ACMA’s leadership noted that the sector’s strong performance was driven by domestic demand, export growth, and value-added activities. However, concerns were raised about the limited supply of rare-earth magnets required for EV manufacturing. This prompted a call for a national strategy on critical materials.

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