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Informist, Tuesday, Jul. 7, 2026

 

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--ACMA DG: Domestic vehicle production seen robust in Q1, FY27
--CONTEXT: Comments by ACMA Director General Mehta at press conference
--ACMA DG: Auto parts exports steady in Q1 despite geopolitical issues
--ACMA DG: Domestic EV industry showing strong growth
--ACMA DG on US exports: Continue to face challenges from tariffs
--ACMA DG: To meet US trade officials Jul to discuss section 301 allegations
--ACMA DG: Hopeful FTAs will open up new export mkts for India
--ACMA DG: US continues to be top destination for exports
--ACMA DG: Facing challenges from non-availability of rare earth magnets
--ACMA DG: Domestic demand, exports continue to be stable, robust
--ACMA DG: Facing challenges from rising insurance, freight costs
--ACMA DG: See challenges from price volatility in raw materials
--ACMA DG: See new entrants in mobility space as tailwind for industry
--CONTEXT: Comments by ACMA President Singhania at press conference
--ACMA President:Shift to alternate fuels, EV add new segment for part makers
--ACMA President: Need to work on localisation of supply chain
--ACMA President: Cos looking at alternate supply sources amid global shocks
--ACMA DG: Expect auto parts maker industry to grow 8-10% FY27
--ACMA DG: Auto cos have not yet passed on higher input cost pressures in Q1
--ACMA DG: Will try to expand footprint in UK mkt post FTA

 

NEW DELHI - India's domestic demand for automobile components as well as exports of auto parts were robust and steady in the quarter ended June, Automotive Component Manufacturers Association of India Director General Vinnie Mehta said Tuesday. This momentum is expected to continue in 2026-27 (Apr-Mar) despite the ongoing geopolitical issues hitting both the domestic market and the external markets. "Despite all challenges, the domestic demand continues to be very, very robust," Mehta said while detailing the Industry's results for FY26 and outlook for FY27. "...our export continues to be very stable," he added. 

 

He projected the automobile components industry to grow 8-10% in FY27 in value terms. This is slower than the growth seen in FY26, when the industry grew nearly 13% to achieve a turnover of INR 7.59 billion. "There has been no let-up in our investments and capacity expansion, despite all that we are going through," Mehta said.  

 

Automobile component manufacturers need to focus on localising their supply chains to reduce dependence on imports, ACMA President Vikrampati Singhania said Tuesday. He said the industry's transition towards alternate fuels and electric vehicles is creating new opportunities for component manufacturers. In light of global disruptions, including the conflict in West Asia, companies should also diversify and develop alternate sourcing channels to strengthen supply chain resilience, he added.

"The transition to newer alternative fuels or EVs slowly but steadily is adding to again a new sector and a new segment that is continuing to open up for Indian component players," said Singhania.

While the sector's outlook is steady, there are a few headwinds for the industry going ahead. Mehta flagged that the Indian auto part maker industry faces challenges from the non-availability of rare earth magnets, rising insurance and freight costs, and volatility in raw material prices.

With the West Asia war driving higher commodity prices, Mehta said automobile manufacturers have not yet passed on higher input cost pressures to component suppliers in the June quarter.

 

On exports, Mehta said the US continues to be the largest market for Indian auto component exports, although shipments to the country remain under pressure due to tariffs. He said ACMA will meet US trade officials this month to discuss Section 301 allegations.

The office of the US Trade Representative had last month issued an order proposing a 12.5?ditional tariff on countries that have used forced labour to produce imported goods. It proposed 10% tariff on countries that have made partial arrangements to prevent production of goods with forced labour. Mehta said that Indian industry will argue against the allegations given the lack of government subsidy for the industry that the Section 301 alleges.

 

Mehta also expressed hope that the recently concluded free trade agreements would help the industry expand its footprint in markets such as the UK.  End

 

Reported by Gunjan Rajput and Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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