Archive · 23 Jul 2026
₹70,300-crore auto-component investment wave gathers pace
Auto-component manufacturers in India are planning to invest ₹70,300 crore in new projects from FY27 to FY29.
These projects focus on electric vehicles (EVs), batteries, and making more parts locally.
This is part of a bigger plan worth ₹4.76 lakh crore across 184 projects.
The industry is moving from just making more parts to using new technologies.
Experts say this will help the industry grow, but there are risks like higher costs and global market changes.
Some experts think profits will go up, while others think they might go down because of these risks.
Auto-component manufacturers plan to invest ₹70,300 crore in projects from FY27 to FY29.
The investment focuses on EVs, batteries, and localisation to reduce import dependence.
Total investment pipeline includes 184 projects worth ₹4.76 lakh crore.
EV penetration in India rose to 8.6% in FY26 from 0.8% in FY20.
Experts differ on future margins, with Brickwork predicting improvement and ICRA forecasting a contraction.
- Who
- Auto-component manufacturers
- What
- Investment in EV and localisation projects
- When
- FY27 to FY29
- Where
- India
- Why
- Shift towards technology-led expansion in EVs, batteries, localisation, and powertrain-agnostic components
Optimistic Outlook
Cautious Outlook
EBITDA Margins
Optimistic Outlook
Brickwork expects EBITDA margins to improve to around 14% in FY27 from 13% in FY26.
Cautious Outlook
ICRA projects operating margins to contract by 50–100 basis points to 10.5–11.5% due to tariff-related export pressure, raw-material volatility, and weaker global demand.
- Total Investment
- ₹70,300 crore
- Investment Period
- FY27 to FY29
- Total Projects
- 184
- EV Penetration
- 8.6% in FY26
- Revenue Growth (FY27)
- 8% (Brickwork), 7–9% (ICRA)