India auto-component sector lines up ₹70,300 crore in projects through FY29

Nearly 70 auto-component projects, centred on EVs, batteries and localisation, are scheduled for commissioning between FY27 and FY29. The investment wave is part of a wider ₹4.76 lakh crore pipeline aimed at expanding domestic mobility supply chains.

— Source publishedThu, 23 Jul, 2026, 18:47 IST·First seen Thu, 23 Jul, 2026, 18:50 IST·Source The Hindu BusinessLine

What happened

India auto-component industry · India’s auto-component sector has ₹70,300 crore of projects due by FY29, focused on EVs, batteries and localisation. The wider

Key facts

  • ₹70,300 crore projects scheduled for commissioning between FY27 and FY29
  • ₹4.76 lakh crore pipeline across 184 projects
  • Nearly 70 projects under implementation
  • Domestic OEM-linked auto-component revenue growth forecast: 7–9% in FY27
  • Sector revenue growth forecast: around 8% in FY27
  • Estimated domestic vehicle sales: 30.2 million units in FY26
  • Vehicle exports: 7.1 million units in FY26
  • EV penetration: 8.6% in FY26 versus 0.8% in FY20

Why this matters

The broad ₹4.76 lakh crore mobility supply-chain pipeline makes this a prime window to acquire, partner with or secure technology access from EV, battery and localisation specialists before capacity tightens.

What to watch

  • FY27 commissioning milestones and the share of announced projects that achieve commercial production on time.
  • EV two-wheeler, passenger-vehicle, bus and commercial-fleet sales growth versus installed component capacity.
  • OEM long-term supply contracts, localisation mandates and new platform launches using domestic components.
  • Battery-cell manufacturing progress, critical-mineral availability and changes in import duties on cells, electronics and rare-earth inputs.
  • Interest rates, supplier leverage, working-capital cycles and evidence of margin compression from underutilised capacity.
  • Charging-network expansion, fleet electrification tenders and battery-safety regulations that influence EV demand and component specifications.
  • Prioritise supplier partnerships with proven capabilities in battery management systems, power electronics, precision manufacturing and automotive software.
  • Stage project investment against signed OEM offtake commitments rather than relying solely on sector-wide EV demand forecasts.
  • Secure localisation of upstream inputs such as cells, magnets, semiconductors, specialty chemicals and battery materials to reduce import-cost and geopolitical exposure.
  • Expand workforce training for high-voltage systems, electronics testing, functional safety and battery recycling.
  • Build aftermarket and replacement-part distribution for EV components, where service networks and warranty economics will become a differentiator.

Also reported by