The Automotive Component Manufacturers Association (ACMA) is looking to adopt lessons from China's advances in automation, battery supply chains, and electronics manufacturing following an industry delegation's visit to the China Auto Show and several manufacturing facilities. ACMA President Vikrampati Singhania told ANI on Tuesday that the visit aimed to study emerging technologies, automation, and electric vehicles (EVs).
Delegation Visits China to Study Emerging Technologies
We went to China, and the purpose was to see what's happening with evolving technologies. We attended the China Auto Show, observed all the new technologies showcased there, and explored the supply chain. We visited about eight or nine different factories in electronics, battery supply systems, and traditional components, Singhania said on the sidelines of an ACMA event announcing the Indian auto component industry's performance for FY2025-26.
It's interesting to see the scale they operate at and the amount of automation they have implemented. We certainly learned from it and will implement those lessons going forward, he added.
Investment in Conventional and New Technologies
The visit comes as Indian auto component manufacturers increase investments in both conventional and new technologies, including EV systems, automotive electronics, and infotainment, while continuing to expand production of traditional components such as engine, polymer, rubber, and noise, vibration, and harshness (NVH) systems.
Earlier on Tuesday, ACMA reported that the industry grew 12.7% in the financial year ended March 2026, driven by strong domestic demand and around 5% growth in exports.
Challenges and Opportunities
Singhania noted that the industry continues to face headwinds from the West Asia crisis, which has increased raw material prices, disrupted supply chains, and elongated working capital cycles, particularly for micro, small, and medium enterprises (MSMEs). However, he said upcoming free trade agreements (FTAs) are expected to open new export markets and improve the competitiveness of Indian auto component manufacturers.
FY27 first-quarter trends remain robust, and Singhania expressed confidence that the industry would maintain its growth momentum. I understand and saw some numbers about the first quarter. First-quarter numbers also stay robust. We are certainly hoping that as the West Asia crisis settles down and the FTAs come into place, the industry will continue to keep a growth trajectory, he said.
Growth Forecast and Domestic Demand
Asked about FY27 growth, Singhania said he expects the industry to deliver upper single-digit or early double-digit growth but declined to provide a specific forecast. He said domestic demand is expected to remain healthy over the next two to three years, supported by growth in the original equipment (OE) industry, while exports are likely to benefit from new trade agreements.
Singhania said investments are continuing in both traditional technologies, including engine, polymer, rubber, and NVH components, as well as emerging areas such as EV technologies, infotainment systems, and automotive electronics.
Policy Support and ESG Practices
On policy, he said ACMA is working closely with the government to address temporary liquidity issues faced by MSMEs and support export growth. He added that Indian auto component manufacturers are strengthening environmental, social, and governance (ESG) practices to comply with the European Union's Carbon Border Adjustment Mechanism (CBAM).
ACMA Director General Vinnie Mehta said during the event that the industry's turnover stood at Rs 7.6 lakh crore in FY26, while auto component exports rose to USD 24 billion. The domestic aftermarket business also recorded around 10% growth during the year.
Export Dynamics and Trade Agreements
Mehta said exports to West Asia, particularly the UAE, which account for around USD 1 billion, came under pressure due to the regional conflict, but expressed confidence that exports to the region would resume as the situation improves. He added that exports to the United States, India's single-largest market for auto components, have remained resilient despite tariff-related challenges.
Mehta said ACMA has consistently supported the government's FTA agenda and expects the UK FTA, the EU FTA, and the proposed India-US trade agreement to create new export opportunities. He added that EV-related business currently accounts for around 5% of the industry's turnover, while shortage of labour remains a near-term challenge.
