The Indian automotive component industry clocked USD 80.2 billion in turnover in FY2025, which translates to 9.6 percent growth over USD 74.1 billion in FY2024 revealed by data from the Automotive Component Manufacturers Association (ACMA).

Interestingly, the domestic component industry was able to further widen its trade surplus to USD 453 million, as against USD 300 million last year, with exports growing at 8 percent, while imports grew by 7.3 percent. The industry believes that despite global challenges, the Indian automotive industry continues to stand tall and is further expected to continue its growth momentum across segments.

As per the data, the industry grew at a CAGR of 14 percent from FY2020 to FY2025, which translates to almost doubling the size in the past five-year period.

Vinnie Mehta, Director General, ACMA said, “The Indian auto component industry continues to exhibit remarkable resilience and growth. With OEM sales, exports and the aftermarket segments all growing positively.”

The Indian automotive industry primarily driven by passenger vehicle segment enabled the component industry to gain volumes, which now account for almost 43 percent of the total component sales to OEMs, followed by commercial vehicle at 25 percent and two-wheelers at 20 percent, among others.

Shradha Suri Marwah, President, ACMA & CMD, Subros, said, “The Indian auto component sector continues to be a cornerstone of the country’s manufacturing prowess. FY2025 was yet another milestone year where the industry’s growth was underpinned by strong domestic demand, rising exports, and increasing value addition. As India transitions towards new-age mobility, our industry is making the necessary strides in investments, technology and localisation to serve both domestic and global markets effectively.”

“The fiscal year witnessed broad-based growth and recovery across segments. While two-wheelers demonstrated robust growth, the passenger vehicle and commercial vehicle segments experienced steady, albeit moderate, momentum. On the exports front, ongoing geopolitical challenges have led to supply-chain challenges. Nevertheless, the industry continues to show remarkable resilience and remains in robust health. Investments in higher value-addition, technology upgradation and localisation are being accelerated to align with evolving customer expectations and global supply chain dynamics. However, the limited availability of rare-earth magnets remains a concern, underscoring the need for a national strategy on critical materials to secure the future of EV and mobility manufacturing in India,” added Marwah.

Exports & Imports

Coming to the exports, the auto component industry clocked USD 22.9 billion worth of exports, up 8 percent YoY, while imports came at USD 22.4 billion, up 7 percent YoY.

Engine components and Drive Transmission and Steering, remain the dominant segment, accounting for more than half of exports. While, Steering and Engine, remained the two dominant segments in imports, accounting for 57 percent of the total imports.

North America (USD 7.3 billion), followed by Europe (USD 6.74 billion) and Asia (USD 5.92 billion) were the top three export markets, which saw growth of 8.4 percent, -2.1 percent and 15.1 percent YoY respectively.

Coming to imports, Asia primarily driven by China (USD 14.91 billion), Europe (USD 5.77 billion) and North America (USD 1.65 billion) were the top three markets, which grew by 8.6 percent, 6.8 percent and 1.3 percent YoY respectively.

Aftermarket

The report found that the expansion of the automotive aftermarket was primarily driven by rising vehicle usage for both personal and commercial vehicles, with the growth being fuelled rural development in entry-level segments, shifting preference for larger vehicles and the increasing shift towards formal repair and maintenance market.

Tailwinds and Headwinds

The apex component body believes that India continues to be a key growth market globally, especially for the automotive industry with largely stable domestic demand, exports, infrastructure development, investments & capacity expansion, government push towards clean mobility and new entrants in the mobility space.

On the other hand, rising geopolitical challenges, increasing freight costs, available of rare earth magnets, raw materials price volatility and high GST on auto components could be a dampener.

Representational image courtesy:  Mike van Schoonderwalt/Pexels

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Automotive component supplier Pricol has announced its financial results for FY2026, reporting revenue of INR 39.63 billion, up 51.24 percent YoY. The net profit came at INR 2.50 billion, with an EBITDA margin of 12.44 percent.

During the year, Pricol received the ‘Excellence in New Model Cost & Development Award’ at the Honda Annual Supplier Convention 2026. The company noted that its growth was driven by a mix of organic and inorganic strategies, alongside continued investments in engineering, localisation and technology-driven mobility solutions.

Pricol has also announced a transition in its board leadership during the quarter. Vanitha Mohan has stepped down as Chairman, and will be succeeded by Vikram Mohan.

Vikram Mohan, Chairman & Managing Director, said, “FY2026 was a defining year for the global automotive industry, marked by supply chain disruptions, geopolitical trade tensions and continued market volatility. Despite these challenges, Pricol demonstrated strong resilience, agility and execution excellence, enabling us to outperform the market and achieve the significant milestone of INR 40 billion in total income through a balanced mix of organic and inorganic growth”.

Going forward, the company is monitoring global geopolitical developments that have contributed to currency volatility, higher commodity prices and increased freight costs. The company intends to mitigate these external pressures through disciplined cost management and operational efficiencies while remaining focused on product development and technology advancement.

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Remsons Automotive Ltd (UK), the United Kingdom subsidiary of Remsons Industries Limited, has been nominated by a global commercial vehicle OEM for a 10-year pedal box programme, with start of production scheduled for Q4 of 2028. The nomination carries an estimated lifetime value of approximately ₹160 crore over the programme term, making it another large nomination in the Group.
The nomination is a significant milestone for the entire Remsons Group, materially expanding the company's commercial vehicle order book and deepening its position as a Tier-1 system supplier to global truck and bus manufacturers. The pedal box programme moves Remsons further up the value chain from individual components to integrated, safety-critical sub-assemblies, and reinforces the strategic role of the UK subsidiary as the Group's gateway to European OEM business.

A critical structural, safety-critical assembly that integrates the brake and (where applicable) clutch pedals into a single mounted unit fitted to the vehicle's bulkhead, the pedal-box assebly contract at Remsons follows an extended technical evaluation and competitive sourcing process. The automotive supplier was assessed on engineering capability, manufacturing readiness, quality systems, programme management and total landed cost over the ten-year programme life.

“This nomination is a landmark moment for the Remsons Group. Securing a ten-year pedal box programme of this scale with a global commercial vehicle OEM validates the engineering depth, manufacturing capability and quality systems that we have built across our Indian and UK operations. It is a defining win for the entire Group and provides clear, multi-year revenue visibility into the next decade,” said Davinder Bains, MD, Remsons Automotive Ltd.

With SOP scheduled for Q4 2028, programme tooling, validation and capacity planning will be progressed across the Group's UK and India operations over the next several quarters. The programme is expected to ramp to full series volumes thereafter and contribute to revenue across the contracted ten-year horizon. 
 

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American tier 1 supplier BorgWarner has secured two significant ‘conquest’ program awards in Asia, strengthening its position in both the combustion and hybrid powertrain segments. The contracts involve a latest-generation wet dual clutch for a Chinese OEM and a specialised variable cam timing (VCT) system for a Japanese OEM.

The awards were disclosed alongside the company’s Q1 2026 financial results, which highlighted a total of 12 new business wins across its global portfolio.

BorgWarner will supply its latest-generation wet dual clutch. The system uses high-performance friction materials and an optimised groove design to reduce drag torque, improving overall transmission efficiency and fuel economy. It features a new integrated wave spring for enhanced robustness and cost-effectiveness. Start of production (SOP) is planned for the second half of 2026.

Secondly, the company won a contract for a Torsional Assist (TA) Variable Cam Timing (VCT) system. This centre-bolt architecture simplifies internal oil passages compared to traditional oil-pressure systems, enabling faster cam phasing and more reliable lock-pin engagement – critical for the high-efficiency requirements of modern hybrid engines. The production is slated to begin in 2028.

Isabelle McKenzie, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems, said, “These new conquest awards reflect BorgWarner’s continued commitment to advancing efficient and competitive propulsion solutions. They demonstrate the resilience and growth potential of our propulsion business in Asia.”

The ‘conquest’ nature of these wins – securing business previously held by competitors – underscores BorgWarner's aggressive expansion in the Asian market. These announcements follow a string of recent successes in the region, including three eMotor awards in China and South Korea announced in April 2026.

While the company reported a slight organic net sales decline of approximately 1.5 percent to 3.5 percent for the full year 2026 due to volatile market conditions, these long-term contracts in the hybrid and SUV segments are expected to be key drivers for profitable growth through the end of the decade.

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Schaeffler, a motion technology company, will showcase its range of electrified powertrain technologies at the 13th Schaeffler Automotive Symposium in Buhl this June.

The event, themed ‘Beyond Driving. Innovation made by Schaeffler.’, will highlight solutions for the entire spectrum of drive systems, including battery electric vehicles (BEV), plug-in hybrids (PHEV), hybrid electric vehicles (HEV) and range extender applications (REEV).

In the battery electric segment, the company focuses on highly integrated and scalable systems. The key developments include system integration, which combines e-axles, drive units and software to create efficient overall systems. Scalable inverter solutions platforms with X-in-1 functionality designed for faster time-to-market and lower costs. Enhancing electric motors and bearings – such as current-insulated variants – through material efficiency and modern manufacturing. Lastly, streamlining development using new approaches to reduce product complexity and accelerate market readiness.

For the hybrid and range extender architectures, Schaeffler will present technologies designed for diverse hybrid topologies, ranging from P1 to P3 systems. These solutions include:

• Dedicated Hybrid Transmissions: An all-in-one platform for hybrid and plug-in hybrid vehicles that integrates software and mechanical components.
• Range Extenders: Systems that utilise internal combustion engines more efficiently to support the ongoing transition to electric mobility.
• Seamless Integration: High-performance actuators and sensors used to make engine operation quiet and clean for vehicle occupants.
• Platform Compatibility: Designs that can be integrated into existing vehicle architectures while meeting cost and performance requirements.

Matthias Zink, CEO, Powertrain & Chassis, Schaeffler, said, “With our Powertrain technology cluster, we will be showcasing Schaeffler’s extensive development capabilities in the powertrain segment at the Schaeffler Automotive Symposium. We offer all customers the entire spectrum of powertrain technologies – from components to functionally integrated systems.”

Thomas Stierle, CEO, E-Mobility, Schaeffler, added, “Our expertise in mechanical engineering, electronics and software enables us to develop scalable system solutions. Thanks to a consistently integrated approach, Schaeffler is developing electric powertrains that optimally combine efficiency, a compact footprint, functionality, sustainability and industrialization.”

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