Story perspectives

Indian Auto Parts Industry Eyes INR30,000 Crore Investment

2/21/2025

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Summary

Story summary

The Indian auto component industry plans to invest INR 25,000-30,000 crore in FY2026 for growth and innovation.
Revenue growth is projected to decelerate to 7-9% in FY2025 and 8-10% in FY2026, with operating margins at 11-12%.
Low localisation in the EV supply chain highlights opportunities for domestic suppliers, particularly in battery cells.
Exports may struggle due to slow vehicle registration growth, but demand for premium components could support Indian suppliers.

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Story summary

The Indian auto component industry plans to invest INR 25,000-30,000 crore in FY2026 for growth and innovation.
Revenue growth is projected to decelerate to 7-9% in FY2025 and 8-10% in FY2026, with operating margins at 11-12%.
Low localisation in the EV supply chain highlights opportunities for domestic suppliers, particularly in battery cells.
Exports may struggle due to slow vehicle registration growth, but demand for premium components could support Indian suppliers.