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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Laufenberg GmbH, a specialist in coating technologies, and WEVO-CHEMIE GmbH, an expert in polyurethane, epoxy and silicone materials, have jointly introduced an innovative manufacturing process that promises to enhance the scalability and reduce the costs of hydrogen technology components. This new method addresses the limitations of conventional sealing production for fuel cell and electrolyser stacks, which has traditionally depended on prefabricated flat gaskets or molded O-rings. These established techniques are inherently discontinuous, requiring individual moulds that result in a manufacturing process that is both time-intensive and costly. The collaborative solution from Laufenberg and Wevo enables the continuous, high-throughput, roll-to-roll production of flat elastomer gaskets. This breakthrough offers manufacturers a scalable path to lower expenses while simultaneously facilitating more efficient and automated production processes for critical hydrogen infrastructure like fuel cells, electrolysers and redox flow batteries.

The core of this new technique involves applying WEVO’s specially formulated two-component liquid elastomers onto a carrier film using Laufenberg’s precision coating equipment. This coated material then travels through a multi-zone curing oven, where temperature is meticulously controlled. An optional pre-curing stage with infrared emitters can be employed to accelerate the process and eliminate air bubbles. The line operates at variable speeds, offering immense production flexibility and the final product is supplied either on large rolls or as precision-die-cut gaskets, ready for installation.

This advanced process accommodates a wide range of specifications, producing pure elastomer seals with thicknesses from a minimal 20 micrometres up to two millimetres. By combining the elastomer with a carrier film, hybrid seals can be created with total thicknesses reaching four mm, catering to demands for both ultra-thin and highly robust sealing solutions. The carrier film can either be removed after curing or remain integrated to provide enhanced structural stability, which is particularly beneficial for softer sealant materials.

Leveraging WEVO’s long-standing expertise in developing low-permeation silicones and polyurethanes, the material properties can be precisely tailored to the application. This joint development marks a significant evolution from traditional liquid dispensing methods towards the efficient production of pre-fabricated, high-performance gaskets. For manufacturers, this innovation represents a critical step forward in streamlining the production of essential components for the hydrogen economy. Representatives from both companies will be available at upcoming industry events to discuss integration and material selection.

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Cummins India (CIL), a power solutions provider, marked its 30th anniversary of listing on the National Stock Exchange of India (NSE) with a ceremonial bell ringing. The event was attended by Ashishkumar Chauhan, MD & CEO of NSE and Shveta Arya, Managing Director of Cummins India.

Since its listing on 29 March 1995, CIL has delivered returns for its shareholders and stakeholders. Over the three decades: the company has delivered 76x shareholder returns at a Compound Annual Growth Rate (CAGR) of 16 percent. Revenues have grown nearly 19x at a 10 percent CAGR and Profit After Tax has increased 30x at a 12 percent CAGR.

CIL now ranks among the top 100 companies by market capitalisation on the NSE, with its market cap surging by 76x since the listing. The company has cumulatively paid out INR 89.10 billion in dividends.

Shveta Arya, Managing Director, Cummins India, said, “For over six decades, we have powered India’s growth story. The anniversary of our 30-year presence on NSE is a significant milestone in that legacy. Since 1995, we have powered industries, enabled infrastructure, and advanced the transition to cleaner, more sustainable energy. This journey is the result of the trust of our shareholders, the dedication of our employees, and the enduring partnerships we have built with our customers, suppliers and communities. As India moves forward, we remain committed to advancing the national vision of Viksit Bharat with innovation, dependability, and inclusive impact for generations to come.”

Ashishkumar Chauhan, MD and CEO, NSE, said, “Cummins India’s 30-year journey on NSE is a remarkable milestone that reflects both resilience and purpose. Over the years, the company has grown in step with India’s progress, delivering value to shareholders, advancing innovation, and contributing to a more sustainable and inclusive future. At NSE, we take pride in being part of this journey and congratulate the leadership and employees of Cummins India on this achievement and look forward to their continued success.”

CIL has evolved into a diversified power solutions leader, now serving 10 industry segments, including rail, marine, defence, oil & gas, and data centres. The company also exports products to markets across Southeast Asia, the Middle East, Latin America, Europe and Africa.

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French tier 1 supplier Valeo will unveil its new electric compressor – the EDC-120, at Busworld Europe scheduled from 4th October to 9^th October 2025.

The component, featuring an integrated inverter, is designed for the electric bus segment. The company shared that this launch signals its move to extend its electrification expertise from passenger and light commercial vehicles into the heavy-duty and bus markets.

Claudine Rochette, Strategy & Communication VP, Valeo Power Division, said, “At Valeo, we are leading the electrification of the automotive market. With the launch of the EDC-120 electric compressor, Valeo drives into the electric bus market. This segment is expected to continue growing worldwide and Valeo’s ambitions do not stop at the electric compressor: we already have a wide portfolio of products for electric cars and light commercial vehicles that will be adapted for use in buses.”

The EDC-120 electric compressor has been engineered to meet the demands of electric buses in terms of performance, energy efficiency and reliability. This development uses Valeo’s existing portfolio of electrification solutions, including motors, inverters, DC/DC converters, heat pumps and other key components for electrified vehicles. Valeo plans to adapt these components further to meet the specific requirements for electric buses.

Valeo will also use its industrial scale and technological expertise to capture a share of the electric bus market. Production of the EDC-120 compressor is planned for 2026 in China, where the adoption of electric buses is most advanced. The company aims to establish a global presence, leveraging its international capabilities and local industrial footprint.

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Aurangabad-based auto component maker Dhoot Transmission Group has appointed Naveen Kumar as its new Group Chief Executive Officer, a key move aimed at accelerating its global growth and strengthening its leadership.

In his new role, Kumar will report directly to Founder and Managing Director Rahul Dhoot.

A Mechanical Engineering graduate from Manipal Academy of Higher Education and an alumnus of the senior management program at the Indian Institute of Management Calcutta, Kumar comes with over three decades of experience across the automotive, manufacturing and technology sectors, with a strong focus on strategic expansion, operational restructuring and forging international partnerships.

Prior to joining Dhoot Transmission, Kumar was the Group CEO of Napino Auto & Electronics. During his tenure there, he successfully scaled the company's revenues, dramatically improved operational performance, established a dedicated R&D centre and secured significant global joint ventures with major firms like Continental and ZF TRW.

Rahul Dhoot, said, "His extensive leadership experience, vision for innovation, and proven ability to deliver sustainable growth make him the ideal choice to lead Dhoot Transmission into its next chapter.”

The appointment aligns with the company's strategic focus on boosting innovation, enhancing competitiveness, and driving significant global expansion. Since its founding in 1999, Dhoot Transmission Group has grown to become a leading supplier of wiring harnesses for a wide range of vehicles – from two-wheelers and three-wheelers to commercial vehicles, off-road, farm and electric vehicles. Over the last 25 years, the Group has also diversified its offerings to include automotive switches, connection systems, advanced electronic components and comprehensive electric mobility solutions, such as charging equipment and battery assemblies.

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