Auto Component Industry Hits Rs 7.6 Lakh Crore As Cybersecurity Mandates Loom

The Indian automotive component industry achieved a significant milestone in FY2025-26, recording a turnover of Rs 7.6 lakh crore, a 12.7% increase over the previous year. According to the Automotive Component Manufacturers Association of India (ACMA), this growth was fueled by strong domestic vehicle production and rising export demand. While supplies to OEMs grew by 16.3%, the aftermarket segment also saw a healthy expansion of 9%.

Exports rose to $24 billion, with Europe becoming the fastest-growing market for Indian components. However, the industry also faced a 13% rise in imports, totaling $25.4 billion, as manufacturers increasingly sought advanced technology products from abroad. Despite these import pressures, ACMA remains optimistic, projecting an 8-10% growth rate for the current financial year as the industry continues to invest in manufacturing capacity and local technology development.

Simultaneously, the Ministry of Road Transport and Highways has introduced mandatory cybersecurity requirements for connected and autonomous vehicles. Manufacturers must now implement a Cyber Security Management System to manage risks throughout a vehicle's lifecycle. These rules apply to Level 3 or higher automated systems starting in October 2026. Industry analysts estimate that these compliance measures could increase the cost of highly-connected vehicles by Rs 10,000 to Rs 15,000, reflecting the rising complexity of modern automotive software.