Indian auto part cos to see tech benefits from FTAs, says ACMA DG Mehta
This story was originally published at 15:15 IST on 19 May 2026
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--ACMA Mehta: FTAs will help auto parts cos gain tech benefits
--ACMA Mehta: Auto parts industry would like to invest in European cos
--CONTEXT: Comments by ACMA Director General Mehta at event in New Delhi
NEW DELHI - India automobile component companies are expected to reap benefits linked to automotive technology because of the trade agreements signed with the UK and Europe, Vinnie Mehta, the director general of the Automotive Component Manufacturers Association of India, said at an event Tuesday.
"We have built the vehicle industry over a very long period," Mehta said at FICCI's Conference on Next-gen Trade Pacts. "We are looking at in the US in terms of gain...we believe that the changing landscape in the auto industry would mean a lot of technology for the country (India)," Mehta said.
Exports form a key lever of growth for Indian automobile components companies. North America accounts for roughly 27-32% of the industry's total exports while Europe accounts for about 33%. Other prominent markets include Asia and Africa.
India had signed a Comprehensive Economic and Trade Agreement with the UK in July 2025. India also signed a free trade agreement with the European Union in January. Additionally, India also signed a trade and economic partnership in March 2024 with the European Free Trade Association. This includes countries such as Iceland, Liechtenstein, Norway, and Switzerland.
Mehta spoke of the cash-rich nature of Indian automobile component companies. "We are all family businesses. Like Indian mindset, we don't borrow much, even if we borrow, we pay up," Mehta said, flagging the low-leverage nature of these companies.
"We are hungry for technologies. And what's very important to me is that in European, in Germany, there are many small technology companies where the second generation did not want to learn (the business)," Mehta said.
These European companies are up for grabs currently. "The Indian auto component industry would like to invest and buy those companies," Mehta said. The trade agreements will also allow upskilling of India's workforce as these European companies employ around 15,000-20,000 engineers and other professionals. "This agreement is going to deepen the presence of these companies in India, looking at how they can harness the engineering skill set of India to design newer products and technologies out of India," Mehta said. END
Reported by Anand JC and Astha Oriel
Edited by Akul Nishant Akhoury
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