India's-Auto-Component-Ecosystem-Continues-to-Grow

Key Highlights

• India's auto-component industry grew 12.7% in FY26, according to industry data.
• Supplies of components to vehicle manufacturers increased 16.3%, supported by higher vehicle production.
• India's auto-component industry reached a turnover of approximately ₹6.75 lakh crore in FY26.
• Auto-component exports increased by around 5%, reflecting continued demand from international markets.
• The replacement/aftermarket segment grew 9%, supported by India's expanding vehicle base and increasing formalisation of the repair market.
• Technology transition: Increasing adoption of electronics and newer vehicle technologies is creating demand for more advanced components across the automotive ecosystem.

What Stands Out

• India's auto-component industry is seeing growth across OEM supplies, exports and the aftermarket.
• Rising vehicle production is supporting demand for components across passenger vehicles, commercial vehicles and two-wheelers.
• The industry is also evolving from traditional mechanical components towards higher-value and technology-intensive components.
• India's growing manufacturing base is supporting its role as an increasingly important global auto-component sourcing hub.

Source: Reuters, 10 August 2026, Automotive Component Manufacturers Association (ACMA), FY26 industry data.

*Portfolio allocation as on 30th June 2026. Allocations are subject to change based on portfolio positioning, investment decisions, and market conditions.

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The information provided is for informational purposes only and should not be construed as investment advice or a recommendation to buy, sell, or hold any security or sector. Views are based on current market conditions and are subject to change without notice. Sectoral allocations and portfolio positioning may vary across schemes and are subject to change in accordance with the investment objective and market conditions. Past performance may or may not be sustained in future and is not a guarantee of future returns.

Entity Name: Motilal Oswal Mutual Fund | SEBI registered Number: MF/063/09/04

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