China strengthened its position as India’s largest source of auto component imports in FY26, accounting for 36% of the country’s total imports, according to the Automotive Component Manufacturers Association (ACMA). The rise highlights India’s continued dependence on Chinese suppliers for key automotive parts despite ongoing efforts to boost domestic manufacturing and diversify supply chains.
ACMA’s latest industry data showed that imports from China continued to outpace those from other major sourcing markets, driven by strong demand for electronics, electric vehicle (EV) components, precision parts, and other high-value automotive products. The trend reflects the growing integration of advanced technologies into vehicle manufacturing, particularly in the EV segment.
The industry body noted that while India’s auto component sector has expanded its production capabilities and exports, certain critical components are still largely sourced from overseas due to limited domestic manufacturing capacity and cost competitiveness. China remains a preferred supplier because of its extensive manufacturing ecosystem, economies of scale, and competitive pricing.
Industry stakeholders have emphasized the need to accelerate localization, strengthen the domestic supplier base, and encourage investments in advanced component manufacturing to reduce import dependence. Government initiatives such as the Production Linked Incentive (PLI) scheme and policies promoting local value addition are expected to support this transition over the coming years.
Despite the higher import share from China, India’s auto component industry continues to witness robust growth in production and exports, supported by rising vehicle demand, increasing localization efforts, and expanding opportunities in global automotive supply chains.