INDUSTRY
Auto component exports rise 5%, driven by surging demand from OEMs, but imports grow faster
- IBJ Bureau
- Jul 08, 2026
The auto component industry grew strongly by 12.7 per cent in FY26, with exports growing by 5 per cent.
However, imports grew faster than exports, widening trade deficit, according to a report by the Automotive Component Manufacturers Association of India (ACMA).
Even as exports increased by 5 per cent, imports rose by around 13 per cent, resulting in a trade deficit of $1.37 billion.
The report adds that the auto component industry’s growth was driven by a 16.3 per cent rise in supplies to original equipment manufacturers (OEMs) amid strong production in growth across passenger and commercial vehicles and two-wheelers.
Supplies to the electric vehicle (EV) segment accounted for 4.6 per cent of OEM sales.
At the same time, the aftermarket segment expanded by 9 per cent, supported by a growing vehicle base and formalisation of the market.
Growth in the aftermarket segment was driven by a rising demand for used vehicles, a shift towards larger and more powerful vehicles and increasing formalisation of the repair and maintenance market.
The rise in export was led by higher shipments to Europe amid expectations of a favourable free trade agreement (FTA) and increased procurement by European OEMs.
Engine components, drive transmission and steering systems accounted for over half of the exports.
Imports, however, surpassed exports, led by supplies from China, Japan and Germany, with drive transmission and steering and engine components contributing 56 per cent of the total imports.
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