Auto Parts Boom: India's Industry Surges Past ₹7.6 Lakh Crore

The Indian auto component industry is poised for significant expansion, fueled by more sophisticated vehicles and higher component values per car. This sector has demonstrated robust growth, more than doubling in size over the last five years with a projected 17% CAGR through FY26. In FY26, it achieved its highest-ever turnover of ₹7.6 lakh crore, and future projections by McKinsey indicate a potential reach of $200 billion by 2030.

Several key trends are driving this upward trajectory, including increased vehicle production, a greater emphasis on localization, a move towards premium vehicles, and a surge in electronic content per vehicle. Companies such as Samvardhana Motherson, Uno Minda, and Sona BLW are identified as being well-positioned to benefit from these favorable market conditions and structural growth opportunities.

Samvardhana Motherson, a global player, is expanding its non-automotive verticals like consumer electronics and aerospace to reduce dependency on the automotive cycle. Uno Minda is focusing on capacity expansion and new product segments, particularly in green mobility, with significant investments planned for FY27. Sona BLW, a technology and product engineering company, is leveraging its strong EV-heavy order book and investing in advanced systems like radar solutions.

These companies are adapting to megatrends such as electrification and premiumization. Over 95% of Uno Minda's and Samvardhana Motherson's portfolios are powertrain-agnostic, ensuring relevance across different vehicle types. Sona BLW is seeing substantial growth from EV components, making up 35% of its automotive revenue and a significant portion of its large order book.