Auto Component Industry Grows As India Invites Bids For Battery Manufacturing

India's automotive component industry reported a strong turnover of ₹7.6 lakh crore in FY2025-26, marking a 12.7 percent year-on-year growth. According to the Automotive Component Manufacturers Association of India, this expansion was primarily driven by robust domestic vehicle production and steady export demand, with supplies to original equipment manufacturers rising by 16.3 percent to ₹6.63 lakh crore.

While exports grew by 5 percent to $24 billion, with Europe emerging as a key market, imports also increased by 13 percent to $25.4 billion. This rise in imports highlights a growing domestic demand for advanced technology products, which the government is now actively seeking to address through localized manufacturing initiatives and strategic policy interventions to reduce reliance on foreign components.

To bolster domestic capabilities, the Ministry of Heavy Industries invited global bids on July 15, 2026, for 10 GWh of manufacturing capacity under the Advanced Chemistry Cell Production Linked Incentive scheme. This tender is part of a broader ₹18,100 crore initiative aimed at achieving a 50 GWh capacity-allocation target. By focusing on grid-scale stationary energy storage, the government aims to strengthen the domestic battery supply chain and enhance India's position in the global energy storage market.