Archive · 15 Jan 2026
India's Auto Component Industry Grows Amid Trade Challenges
The auto component industry in India grew by 6.8% to $41.2 billion in the first half of the financial year 2025-26.
This growth was driven by strong domestic demand and sales to car manufacturers.
However, the industry faced challenges in exports, especially to the US due to high tariffs.
Imports increased faster than exports, leading to a trade deficit of $200 million.
The industry had a trade surplus of $150 million in the same period last year.
Exports to Europe, Africa, and Asia grew, but shipments to North America remained flat.
Imports from China rose significantly, contributing to the trade deficit.
The industry is optimistic about other markets like Europe but faces challenges with the US due to tariffs.
The auto component industry grew 6.8% YoY to $41.2 billion in H1 FY26.
Exports increased by 9.3% to $12.1 billion, while imports rose by 11.5% to $12.3 billion, resulting in a $200 million trade deficit.
Exports to the US were impacted by high tariffs, with shipments remaining flat at $3.67 billion.
Imports from China surged by $1.1 billion, contributing to the trade deficit.
The industry had a trade surplus of $150 million in H1 FY25, compared to a deficit in H1 FY26.
- Who
- Automotive Component Manufacturers Association of India (ACMA)
- What
- Auto component industry growth and trade balance
- When
- April–September 2025 (H1 FY26)
- Where
- India
- Why
- Stable domestic demand, aftermarket growth, and global trade dynamics
- Growth Rate
- 6.8% YoY
- Total Revenue
- $41.2 billion
- Exports
- $12.1 billion
- Imports
- $12.3 billion
- Trade Balance
- $200 million deficit
- Top Export Destinations
- US, Germany
- Top Import Sources
- China, Japan, Germany
- EV Supplies to OEMs
- 4.6%
Sources
Auto component industry grows 6.8% in H1FY26; trade balance slips into deficit
Auto components industry grow by 7% YoY to ₹3.56 lakh crore in H1 FY26
Diversification beyond US helps India keep export volumes stable
India And US "Very Close" To Signing Trade Deal: Commerce Secretary
