China's Share In India's Auto Component Imports Climbs To 36% In FY26: ACMA

India imported a bigger share of its auto components from China in FY26, even as domestic manufacturers posted another year of healthy growth.

Fresh data released by the Automotive Component Manufacturers Association of India (ACMA) shows China's share of India's auto component imports rose to 36% in FY26 from 29% a year earlier.

The figures underline that while local production continues to expand, manufacturers are still relying heavily on Chinese suppliers for a wide range of components.

China Remains India's Biggest Supplier Of Auto Components

ACMA's Industry Performance Review for FY26 shows that China retained its position as the largest supplier of auto components to India.

After China, Japan contributed 11% of imports, followed by Germany at 10% and South Korea at 7%.

On the export front, the United States remained the largest overseas market, accounting for 26% of India's auto component exports during the financial year.

Explaining the trend, ACMA Director General Vinnie Mehta said the automobile industry operates through global supply chains, making imports unavoidable in several cases.

Why Imports From China Continue To Rise

According to Mehta, there is no single reason behind the higher imports from China.

Some vehicle manufacturers rely on specialised components that are not yet produced in India, while multinational companies often source certain parts from designated manufacturing hubs, including China, as part of their global procurement strategy.

He also pointed out that cost competitiveness continues to influence sourcing decisions. In some cases, rapid growth in vehicle production creates temporary shortages in domestic component capacity, forcing manufacturers to import parts to avoid supply disruptions.

Mehta also referred to the recent restrictions on the export of rare earth magnets by China. While shipments of the magnets themselves were affected, imports of finished assemblies and sub-assemblies containing those magnets continued, allowing production schedules to remain largely unaffected.

Industry Records Double-Digit Growth In FY26

Despite higher imports, India's auto component industry delivered another year of strong growth.

The sector's turnover increased 12.7% to ₹7.60 lakh crore (about $85.9 billion) in FY26, compared with nearly ₹6.74 lakh crore in the previous financial year.

ACMA attributed the growth to healthy domestic vehicle demand, higher production across segments and continued investment in manufacturing capacity.

Looking ahead, the industry body expects the sector to grow by 8-10% in the current financial year, supported by domestic demand as well as exports despite ongoing geopolitical uncertainties.

ACMA President Vikrampati Singhania said the industry's long-term outlook remains encouraging. He noted that rising domestic consumption, infrastructure-led economic expansion, fresh manufacturing investments, free trade agreements and increasing global sourcing from India are expected to create new growth opportunities for the country's auto component manufacturers.

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