Domestic auto component industry grows 10% in FY25: ACMA

The domestic auto component industry grew 9.8% year-on-year in FY25 to Rs 6.73 lakh crore, the Auto Component Manufacturers Association (ACMA) said on Tuesday. Between FY20 and FY25, the sector grew at a CAGR of 14%. 

Notably, auto component supplies to original equipment manufacturers (OEMs) stood at Rs 5.70 lakh crore, registering a 10% year-on-year growth, driven by an 8% increase in overall vehicle production in the country. 

“The Indian auto component industry continues to exhibit remarkable resilience and growth. With OEM sales, exports and the aftermarket segments all growing positively, the industry clocked a turnover of Rs. 6.73 lakh crore ($80.2 billion) in FY25, reflecting a growth of 9.6% over the previous fiscal. Notably, the trade surplus was $453 million—a testament to India’s growing manufacturing competitiveness in the global market and localisation initiatives. The aftermarket, estimated at Rs 99,948 crore, also witnessed a growth of 6%. The component supplies to OEMs in the domestic market grew by 10% to Rs 5.7 lakh crore,” says Vinnie Mehta, Director General, ACMA.

Exports of auto components grew by 8% to $22.9 billion (Rs. 192,346 crore) from $21.2 billion (Rs.1,75,960 crore) in FY24. North America, accounting for 32% of exports, saw an increase of 8.4%, while Europe, accounting for 29.5%, witnessed a decline of 2.1%. Asia, accounting for 26%, witnessed 15.1% growth. Top export categories included drive transmission & steering, engine components, suspension, braking, and body/chassis parts.

Imports stood at $22.4 billion, growing 7.3 %, with Asia accounting for two-thirds of the total. China continued to dominate the auto component imports, accounting for 29% of total imports in FY25. The industry registered a trade surplus of $453 million, indicating strengthening global competitiveness and enhanced localisation efforts. Trade surplus stood at $300 million in FY2023-24.

The aftermarket grew by 6% to Rs. 99,948 crore ($11.8 billion), driven by an expanding used vehicle base, formalisation of the repair ecosystem, and stronger rural demand supported by e-commerce penetration. 

“The Indian auto component sector continues to be a cornerstone of the country’s manufacturing prowess. FY25 was yet another milestone year where the industry’s growth was underpinned by strong domestic demand, rising exports, and increasing value addition. As India transitions towards new-age mobility, our industry is making the necessary strides in investments, technology, and localisation to serve both domestic and global markets effectively,” says Shradha Suri Marwah, President, ACMA & CMD, Subros.