India's auto component exports to North America remained flat in FY26, while overall exports grew a modest 5%, amid geopolitical disruptions, including the West Asia conflict, US tariff measures and other trade restrictions, according to data released by the Automotive Component Manufacturers Association of India (ACMA) on Tuesday.
Imports, however, rose 13% during the year, with China accounting for 36% of India's auto component imports, followed by Japan and Germany.
"Exports to North America remained at last year's level despite tariff-related challenges. We continue to face tariff issues, yet exports to the US—which accounts for the bulk of North American shipments—have remained resilient. They have continued to hold steady even this quarter," said ACMA Director General Vinnie Mehta.
With imports outpacing exports, India's auto component trade deficit widened to a record $1.37 billion in FY26, the first time the sector has reported a trade deficit, according to ACMA.
While exports to North America remained stagnant, shipments to Europe rose 9% to $7.36 billion, while exports to Latin America increased 12% to $1.54 billion. Europe emerged as the largest export destination for Indian auto components.
ACMA expects exports to Europe to receive a further boost once the India-European Union Free Trade Agreement (FTA) comes into force. The association noted that several European original equipment manufacturers (OEMs) are expanding their procurement operations in India, strengthening export prospects. Despite Europe's dominance, exports to the UK account for only about 3% of India's total auto component exports.
ACMA President Vikrampati Singhania said Indian manufacturers are increasingly diversifying their export markets to reduce dependence on the US.
"Although exports to the US did not grow, shipments to Europe, Africa and Latin America increased. Diversification is clearly underway, and these alternative markets will continue to expand. In many ways, the current geopolitical challenges have turned into an opportunity for us," Singhania said.
He added that several global markets are looking to reduce their dependence on China for sourcing, creating an opportunity for Indian manufacturers to expand their global footprint.
(Author Alakshya Singh is an intern with the New Indian Express)