ACMA Hosts Inaugural STEER 2025, Setting the Course For India’s Automotive Aftermarket

The Automotive Component Manufacturers Association of India (ACMA) recently held the inaugural STEER 2025, a national aftermarket confluence designed to chart a course for the future of India’s automotive components industry.

The event, convened on 8th August, saw participation from leading government and industry voices, including Union Minister Pralhad Joshi, Shradha Suri Marwah, President, ACMA, Vinnie Mehta, Director General, ACMA and Ramashankar Pandey, Chairman, ACMA Aftermarket Sub-Committee.

In his keynote, Joshi praised ACMA’s commitment to consumer empowerment and highlighted the government’s Right to Repair initiative, stating that it would help make genuine spare parts and repair information more accessible and encourage sustainability and affordability while strengthening India’s presence globally.

Throughout the day, delegates engaged in lively discussions on sectoral challenges and opportunities around safety, technology adoption, skills development, market access and supply chain resilience. Actionable recommendations emerged to help advance the aftermarket in line with evolving consumer expectations and international trends.

According to data presented by Ernst & Young, India’s auto component sector has experienced robust growth, registering a compound annual growth rate (CAGR) of 12 percent from FY2018 to FY2024. The aftermarket segment itself expanded at around 8 percent CAGR over this period.

In FY2024, the industry’s turnover reached INR 6,147 billion, with exports climbing to INR 1,760 billion and constituting around 4 percent of India’s total national exports. The sector currently contributes approximately 2 percent to India’s GDP and provides employment to nearly five million people, highlighting its importance as one of the country’s largest employers.

Exports have become a significant driver, fuelled by strong domestic demand, supportive government incentives and India’s integration within the global ‘China+1’ supply strategy. Lower manufacturing costs give Indian exporters a competitive edge, with average factory wages 50-75 percent lower than those in China, allowing for 20-30 percent savings on labour-intensive components. Government schemes such as the Auto PLI Scheme have further boosted export growth, offering sales-linked incentives of 8–18 percent for advanced and electric vehicle components. Engine parts remain the largest export category, though substantial shares are also held by sectors such as suspension, braking, body/chassis, transmission and electronics.

Global opportunities abound in both developed and emerging markets. Key targets for Indian suppliers include Latin America, Indonesia, Poland, the UAE and Africa. Brazil’s automotive aftermarket alone is valued at USD 12,091 million (CY23), while Indonesia’s stands at USD 7,759 million, offering significant scope for further growth. Indian mechanical and consumable parts, particularly for two-wheelers, commercial vehicles and tractors, enjoy a reputation for quality in many of these regions; for instance, Nigerian purchasers are willing to pay up to 25 percent more for critical Indian spares compared to cheaper Chinese alternatives.

Trade agreements such as the India-UAE CEPA have facilitated access to high-growth markets by removing import duties, while bilateral pacts with African nations support expansion into West and East Africa. In Africa, car ownership remains relatively low at 40 per 1,000 people – far less than the global average – indicating substantial growth potential for automotive aftermarket products over the coming decade.

At STEER 2025, speakers emphasised strategies for further accelerating India's export momentum, including building stronger online and e-commerce presence, innovative branding, tailored product offerings, collaborative supplier initiatives, streamlined logistics and enhanced market access through local partnerships. ACMA reaffirmed its commitment to close collaboration with government and industry stakeholders, placing consumer empowerment and sustainability at the core of its vision to enhance India's reputation as a globally competitive supplier.

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Greenfuel Energy Solutions, a subsidiary of Lumax Auto Technologies (LATL), has opened a manufacturing line for ferrule-less tubes and fittings at its Manesar facility. The line was inaugurated by the leadership team of Maruti Suzuki India.

The project involves an initial investment of INR 250 million, with a further INR 500 million planned over the next five years. The facility has the capacity to supply components for approximately 100,000 vehicles, with production ramping up in phases.

The facility localises the production of ferrule-less tubes and fittings for CNG vehicles, a technology that was previously imported. The solution uses torque-tightened assembly for mass production. Greenfuel developed the line in collaboration with its German partner, WEH Gas Tech, adapting the technology for Indian conditions.

Deepak Jain, Director, Lumax Auto Technologies, said, “The localisation of this technology reflects our strong commitment to the ‘Make in India’ agenda. By bringing critical manufacturing capabilities onshore, we are accelerating technology transfer, strengthening domestic supply chains, and enhancing India’s competitiveness in advanced automotive manufacturing.”

Anmol Jain, Managing Director, Lumax Auto Technologies, added, “This initiative lays the foundation for scalable and sustainable growth. It improves operational efficiencies, deepens collaboration with OEM partners, and enables faster validation cycles supporting the evolution of Indian manufacturing towards higher value-added capabilities.”

The transition to domestic manufacturing is intended to reduce reliance on global supply chains and eliminate costs associated with import duties and foreign-exchange exposure.

Akshay Kashyap, MD & CEO, Greenfuel Energy Solutions, said, “We are the first and only company in India to localise ferrule-less tubes and fittings along with the underlying manufacturing technology. This Make-in-India solution offers ease of installation, reduced labour costs, and enhanced safety for the automotive industry. We have already commenced supplies to a leading OEM and are witnessing strong interest from others.”

“This technology has been proven in Europe and used by an established German automotive brand for over seven years. We have successfully indigenised it in India in collaboration with our long-standing German partner, WEH Gas Tech, a relationship spanning nearly two decades. While the core line was sourced from Germany, it has been adapted and optimised for Indian operating conditions, combining global credibility with local engineering expertise,” added Kashyap.

In 2024, Lumax Auto Technologies Limited acquired a 60 percent stake in Greenfuel Energy Solutions’ alternate fuels business for INR 1.53 billion. The division reported revenues of INR 1.7 billion in the first half of the year and maintains an order book of approximately INR 2 billion. The expansion aligns with the industry-wide shift toward alternate-fuel platforms in India.

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Tier 1 automotive component supplier Uno Minda has been named the ‘Best Governed Company’ at the 25th ICSI National Awards for Excellence in Corporate Governance. The company received the award in the Listed Segment (Medium Category) during a ceremony held on 19 December 2025.

The Institute of Company Secretaries of India (ICSI), a body under the Ministry of Corporate Affairs, recognised Uno Minda for its governance framework, Board structure and transparency. The evaluation also considered stakeholder value enhancement, CSR, and sustainability. The company treats governance as an enabler of growth and value creation.

The award was presented by Dr Raj Bhushan Choudhary, Minister of State for Jal Shakti, and P T Usha, Member of Parliament and President of the Indian Olympic Association.

The jury for the awards was chaired by Dr Justice D Y Chandrachud, former Chief Justice of India. Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), attended the event as Guest of Honour.

This recognition follows other governance awards received by the company. Uno Minda was previously granted the ‘Amrop–ET India’s Best Board’ Award in 2021 for Board effectiveness and leadership. It also received the Golden Peacock Award for Excellence in Corporate Governance in 2020 from the Institute of Directors.

The ICSI National Awards are intended to promote governance standards that support the socio-economic objectives of the Government of India.

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Honda Motor Co., and Hitachi have signed an agreement for Hitachi to transfer a portion of its common shares in automotive component supplier Astemo to Honda.

The transaction shifts the voting rights of the joint venture. Previously held at a 40–40 percent split between Honda and Hitachi, with 20 percent held by JICC-01, the new structure grants Honda a 61 percent majority stake. Hitachi’s share will decrease to 19 percent, while JICC-01 maintains its 20 percent holding.

The capital restructure aims to position Astemo as a provider of integrated vehicle systems for the Software Defined Vehicle (SDV) era. The company intends to integrate software and hardware across in-car domains and cloud engineering.

Under the new arrangement, Astemo will increase collaboration with Honda to utilise the automaker’s development expertise. Hitachi will continue to provide support focused on digital technology to assist in AI and software development.

The company confirmed its intent to pursue an Initial Public Offering (IPO) while focusing on the electrification of mobility and AI-driven intelligence.

"Under the new capital structure, Astemo will accelerate its efforts more than ever, aiming to become a company that leads the electrification of mobility and AI-driven intelligence in the SDV age. As a system solution provider that offers not just individual components but software-defined integrated vehicle systems, Astemo aims to be a leading company that drives electrification and AI-driven intelligence of mobility in the SDV age, challenging itself to achieve further growth," said Astemo in a statement.

At present, Astemo has over 80,000 employees globally and operates across the Americas, Asia, Europe and Japan, managing divisions for electrification, vehicles and motorcycles.

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The ACMA Mobility Foundation and Spark Minda Group recently held the Spark Connect Tech Show, which aimed to increase visibility and capability development for Tier-2 and Tier-3 suppliers within the automotive supply chain.

The initiative involved 25 supplier partners representing a shift in ACMA’s technology engagement, moving from OEM-led events to Tier-1-hosted platforms. This format allowed suppliers to present solutions directly to Tier-1 and OEM functions.

Vinnie Mehta, Director General, ACMA, stated, “While ACMA organises several large exhibitions and international events, targeted technology shows such as these play a distinct role in supporting individual companies. They enable direct engagement between OEMs, Tier-1s and supplier partners, and provide valuable, specific feedback from engineering, R&D and procurement teams. This kind of engagement is critical as we work to strengthen Tier-2 capabilities and build a more competitive automotive ecosystem.”

Aakash Minda, Executive Director, Spark Minda Group and Chairperson, Supply Chain & Raw Materials Pillar, ACMA, added, “Through our collaboration with the ACMA Mobility Foundation on initiatives such as the Spark Connect Tech Show, we are working to improve visibility and access for Tier-2 and Tier-3 supplier partners across Tier-1s and OEMs. These buyer-seller engagements provide an opportunity for suppliers to showcase their capabilities and explore potential collaboration and business opportunities within the automotive value chain.”

The Spark Connect Tech Show is part of the ACMA Mobility Foundation’s work to deepen supply-chain integration. The foundation focuses on the development of the automotive components ecosystem.

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