New Delhi [India], July 7 (ANI): India’s auto element business grew strongly by 12.7 per cent in FY26 with exports rising 5 per cent, nonetheless, imports grew sooner than exports, widening commerce deficit, as per a report by Automotive Component Manufacturers Association of India.
The report famous India’s auto element business grew 12.7 per cent in FY26, pushed by a 16.3 per cent rise in provides to OEMs amid sturdy car manufacturing development throughout passenger autos, industrial autos and two-wheelers.
At the identical time, the aftermarket section expanded 9 per cent, supported by a rising car base and market formalisation. Growth within the aftermarket section was pushed by rising demand for used autos, a shift in the direction of bigger and extra highly effective autos, and growing formalisation of the restore and upkeep market, as per the report.
India noticed a wholesome 5 per cent enhance in its exports, whereas imports rose round 13 per cent, leading to a commerce deficit of USD 1.37 billion. Supplies to the EV section accounted for 4.6 per cent of OEM gross sales.
The rise in export was led by increased shipments to Europe amid expectations of a beneficial FTA and elevated procurement by European OEMs.
Engine parts and drive transmission and steering programs accounted for over half of exports. Imports, nonetheless, surpassed exports, led by provides from China, Japan and Germany, with drive transmission and steering and engine parts contributing 56 per cent of whole imports.
The report highlighted a number of tailwinds and headwinds for the auto element sector. Key development drivers embrace the federal government’s deal with carbon neutrality, growth of FTAs opening new markets, infrastructure growth, rising home car demand, secure export prospects, elevated investments, capability growth and the entry of recent gamers within the mobility area.
However, the sector faces challenges from geopolitical uncertainties, together with the Russia-Ukraine battle, West Asia tensions, US tariffs and Chinese commerce restrictions. Other headwinds embrace restricted availability of uncommon earth magnets, uncooked materials worth volatility, increased insurance coverage and freight prices, and labour shortages, it mentioned. (ANI)