Auto Component Industry Grows 7% in H1 FY26; Imports Outpace Exports, Creating Trade Deficit

• India's auto component industry recorded a 6.8% year-on-year growth in H1 FY26, reaching Rs 3.56 lakh crore.
• Growth was driven by a 7.3% rise in domestic supplies to OEMs, particularly in PV and LCV segments, and a 9% increase in aftermarket revenues.
• EV components constituted 4.6% of total OEM supplies, indicating a shift towards new mobility technologies.
• Exports grew 13% to Rs 1.05 lakh crore, with the US and Germany as key destinations, despite global challenges.
• Imports surged 15.8% to Rs 1.07 lakh crore, leading to a trade deficit of Rs 1,630 crore, reversing last year's surplus.

Why It Matters: Despite robust growth in OEM supplies and exports, rising imports led to a trade deficit for India's auto component sector.