Auto Component Industry Plans Rs 30,000 Cr Investment In FY26

The Indian auto component industry is projected to invest between Rs 25,000 to Rs 30,000 crore in FY2026, focusing on capacity expansion, localization, and the development of electric vehicle (EV) parts, according to ICRA. This follows an estimated investment of Rs 15,000 to Rs 20,000 crore in FY2025. The revenue growth for the sector is expected to moderate to 7-9% in FY2025 and 8-10% in FY2026, down from 14% in FY2024, driven largely by demand from domestic Original Equipment Manufacturers (OEMs). Replacement demand is also anticipated to rise, supported by an increasing vehicle population and the growing average age of vehicles. However, exports may face challenges due to subdued vehicle registration growth in key international markets. Overall, the strategic investments aim to enhance local manufacturing capabilities and adapt to new regulatory requirements.