The Indian automotive components industry, which is a critical partner for the domestic as well as the global automotive industry is expected to grow by 8-10 percent in FY2026 according to ICRA.

The estimates are based on the company’s assessment of about 46 auto ancillaries with aggregate annual revenue of over INR 3,000 billion in FY2024, which accounted for about 50 percent of the industry.

For FY2025, the industry is expected to report 7-9 percent growth, with operating margines to be around 11-12 percent for FY2025 and FY2026. The confidence comes on the back of the industry benefitting from operating leverage, higher content per vehicle and value addition while remaining vulnerable to any significant unfavourable movements in commodity prices and foreign exchange rates.

The study stated that the ‘disruption along the Red Sea route has resulted in a surge in ocean freight rates by 2-3 times in CY2024 compared to CY2023. Any further sharp and sustained increase in ocean freight rates could also have a bearing on margins for auto component suppliers having significant exports/imports.’

In FY2026, ICRA estimates that the auto component sector will pump in INR 250-350 billion investment towards enhancing capacity, localisation/capability development and new technologies (including EVs) among others.

The big opportunity in EV segment can be seen on the fact that at present only 30-40 percent of the supply chain in India is localised, which includes traction motors, control units and BMS. On the other hand, EV battery cells that make up for almost 30-40 percent of an EV cost continues to be imported.

Vinutaa S, Vice President and Sector Head – Corporate Ratings, ICRA, said: "The domestic auto component industry is in a transitory phase with the automotive players increasingly focusing on sustainability, innovation and global competitiveness. Demand from domestic original equipment manufacturers (OEMs), which constitutes over half of the industry revenues, is estimated to grow by 7-9 percent in FY2025 and 8-10 percent in FY2026. Part of the growth would stem from premiumisation of components and higher value addition. Growth in replacement demand is pegged at 5-7 percent in FY2025 and 7-9 percent in FY2026, driven by increase in vehicle parc, higher average age of vehicles/used car purchases, preventive maintenance and growth in organised spare parts, among other reasons.”

“Exports, which account for close to 30 percent of the industry’s revenues, are likely to be impacted by subdued vehicle registration growth in the target markets. However, factors like rising supplies to new platforms because of vendor diversification initiatives by global OEMs/Tier-Is and higher value addition, partly stemming from increase in outsourcing, augur well for Indian auto component suppliers.”

Metal Castings & Forgings

ICRA finds that Indian component suppliers in the metal castings and forgings also have a bigger opportunity on the back of plants closure in European Union on the back of viability issues.

The report stated that ‘ageing of vehicles and sale of more used vehicles in global markets would aid in exports for the replacement segment. The impact of any import tariffs on Indian auto component exports remains monitorable.’

In the medium-to-long term, premiumisation, localisation, EVs and stringent regulatory norms continue to offer tailwind for the Indian automotive industry.

“ICRA’s interaction with large auto component suppliers indicates that the industry is estimated to spend INR 150-200 billion in FY2025 and another INR 250-300 billion in FY2026. The incremental investments would be made towards new products, product development for committed platforms and development of advanced technology and EV components, apart from capex for capacity enhancements and upcoming regulatory changes. R&D, though, is still at an average of 1-3 percent of operating income, significantly lower than the global counterparts. ICRA expects auto ancillaries’ capex to hover around 7-8 percent of operating income over the medium term, with the PLI scheme also contributing to incremental capex towards advanced technology and EV components,” he concluded.

Representational Image courtesy: Ronaldo Galeano/Pexels 

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Bolt.Earth and Statiq have announced a strategic partnership to enhance electric vehicle (EV) charging access across India. The collaboration focuses on interoperability, allowing four-wheeler users to access more charging options through a unified system.

Under the agreement, EV drivers can locate, access, and pay for chargers on both the Bolt.Earth and Statiq networks using either company's mobile application.

The partnership integrates Statiq’s DC fast-charging infrastructure for four-wheelers with Bolt.Earth’s platform. This expansion targets key cities and highways to assist with intercity travel and range anxiety.

Statiq operates a network that includes both AC and DC fast-charging solutions in urban centres and commercial hubs. Bolt.Earth provides a peer-to-peer (P2P) charging platform serving two-wheeler, three-wheeler, and four-wheeler vehicles across more than 1,900 cities.

Akshit Bansal, Founder & CEO, Statiq, said, “At Statiq, our vision has always been to make public charging simple, reliable and widely accessible. Partnering with Bolt.Earth enables us to connect two strong networks and providing EV drivers with more fast-charging options through a seamless experience. By reducing the need for multiple apps and bringing more chargers onto a unified journey, we’re taking a meaningful step towards an open, interoperable charging ecosystem that supports faster EV adoption across India.”

S Raghav Bharadwaj, CEO & Founder, Bolt.Earth, said, “Interoperability is the future of EV charging in India, and this partnership is a decisive step toward that future. By uniting Bolt.Earth’s universal network with Statiq’s robust, fast-charging infrastructure, we’re delivering unmatched accessibility and convenience to EV users. This integration aims to ease range anxiety, eliminate the hassle of multiple apps, and provide a single, real-time view of available charging points—making EV charging seamless, reliable, and user-friendly.”

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Japanese automotive component supplier Toyoda Gosei Co, has launched automotive weatherstrips containing a higher percentage of recycled rubber. The components have been adopted for the Toyota Motor RAV4, with plans to expand the application of this technology to other models.

While recycling processes for steel and plastic are established, rubber has historically been incinerated for energy recovery due to the complexities of devulcanisation. This process uses heat and pressure to break the sulphur bonds that provide rubber with elasticity; however, it often weakens the material and creates odours.

Toyoda Gosei has modified its proprietary devulcanisation technology to improve the quality of regenerated rubber. These refinements have allowed the company to increase the recycled content in automotive parts from under 5 percent to 20 percent. The achievement received a Project Award from Toyota Motor.

The company is now working to apply these techniques to:

• Synthetic Rubber: Expanding use in products such as rubber hoses.
• Natural Rubber: Developing processes for materials used in higher volumes across the industry.

The company intends to collaborate with vehicle manufacturers to establish a system for collecting and regenerating rubber from end-of-life vehicles. This circular model aims to reduce carbon emissions and improve resource circulation within the automotive supply chain.

Toyoda Gosei stated that by leading rubber recycling efforts, it seeks to address long-standing industry challenges regarding waste management and material strength in recycled elastomers.

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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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