Indian auto-parts makers expand overseas capacity as OEMs diversify sourcing beyond China
Suprajit Engineering, Highway Roop, SPR Auto Technologies and Tenneco are adding global manufacturing and engineering capabilities amid tariff volatility and supply-chain risk. India’s auto-component exports are projected to rise from $24 billion in FY26 to $45 billion by the end of the decade.
What happened
Suprajit Engineering · Indian auto-parts suppliers including Suprajit, Highway Roop, SPR Auto and Tenneco are expanding global manufacturing and engineering
Key facts
- India auto parts exports forecast to reach $45 billion by the turn of the decade, from $24 billion in FY26
- India accounts for less than 5% of global auto parts trade versus China's 12%
- Highway Roop derives 55% of ₹2,500 crore annual revenue from exports
- SPR Auto has over 14 plants in India and eight assembly centres
- SPR Auto's internal-combustion-engine business is under 35% of revenue
Why this matters
The sourcing shift creates opportunities for acquisitions, joint ventures and regional manufacturing partnerships that give Indian suppliers faster access to OEM programs and overseas markets.
What to watch
- India auto-component export growth versus the FY26 $24 billion baseline
- New OEM sourcing mandates or supplier diversification targets outside China
- US, EU and Mexico tariff changes affecting Chinese and Indian auto parts
- Utilization rates and profitability at new overseas facilities
- Large contract wins from global OEMs and Tier-1 suppliers
- India-EU, India-UK or other trade-agreement progress
- Global light-vehicle production forecasts and EV adoption rates
- Warranty, quality or delivery-performance data for newly globalized Indian suppliers
- Track overseas plant announcements, acquisitions and engineering-center openings by Indian wiring, braking, suspension, electronics and thermal-management suppliers.
- Watch whether OEM awards shift from single-component purchase orders to multi-year, multi-region platform contracts.
- Assess supplier exposure to EV components, software-enabled systems and aftermarket parts, where localization demand may rise faster than legacy mechanical categories.
- Monitor retail implications: greater availability and potentially lower prices for India-sourced replacement parts in North America, Europe and emerging markets.
- Expect automotive aftermarket distributors and private-label parts retailers to broaden India sourcing as OEM validation improves supplier quality credentials.