ACMA Projections Signal Robust 10% Growth for Auto Component Sector

India's automotive components sector is poised for strong expansion, with the Automotive Component Manufacturers Association of India projecting an 8-10% growth rate for the coming fiscal year. The optimistic outlook follows a stellar performance in FY26, where the industry logged a record turnover of ₹7.60 lakh crore, translating to $85.9 billion and representing a 12.7% surge in rupee terms over the previous year.

While component exports climbed 5% to reach $24 billion during the past fiscal year, imports expanded at a faster pace of 13% to hit $25.4 billion, resulting in a trade deficit of $1.37 billion. China dominated inbound shipments, accounting for 36% of total component imports, highlighting ongoing structural dependencies in raw material procurement and advanced sub-assemblies.

Bolstering this positive trajectory, Goldman Sachs predicts that the domestic auto parts industry will compound at 10% annually through fiscal year 2030, generating over $124.4 billion in revenue. This projected scale is expected to be propelled by strategic industry diversification into semiconductor manufacturing and defense applications alongside shifting global supply chain alignments.