Automotive components by Brakes India and cast wheels by Wheels India were part of the first consignment shipped from India after the UK-India Comprehensive Economic and Trade Agreement (CETA) came into force on Wednesday.
Sriram Viji, president-designate, ACMA, and managing director, Brakes India, said the UK deal was a significant shift in sentiment and a confidence booster across the European market for the Indian automotive industry.
At $801 million, the UK currently accounts for 3% of exports and is growing at 11%. Imports from the UK were at $ 566 million with a trade surplus of $ 235 million, and they would now build on it. The deal could lead to more investment in India, and there were also many automotive technology hubs in the UK that the Indian automotive industry could work with, Viji said.
Vikrampati Singhania, president, ACMA and managing director, J K Fenner (India), said, newer markets will open up for the Indian auto component industry. The Indian auto component manufacturing was competitive and part of the supply chain derisking plans of global companies.
They were speaking at the ACMA Mobility Foundation’s cluster conference on building a world-class automotive supply chain and celebrating ACMA Cluster Movement’s silver jubilee. The Cluster Movement has supported 2,500 manufacturing plants and thousands of manufacturing professionals in adopting global best practices to be future-ready and a globally competitive automotive supply chain.
Balancing Global Deficits
The Indian auto component industry grew by 12.7% to Rs 7.6 lakh crore in turnover in FY2025–26, with sales to OEMs at Rs 6.6 lakh crore. Auto component exports grew 4.8% to $ 24 billion (Rs 2.12 lakh crore), while imports increased by 13.1% to $ 25.4 billion (Rs 12.24 lakh crore). India’s auto component trade deficit stood at $1,370 million. Drive transmissions and steering accounted for 50% of the imports. Europe saw the highest increase in exports on the expectation of a favourable FTA and European OEMS expanding procurement offices in India. Exports to Europe grew by 9% to $ 7.36 billion. Engine components, drive transmissions and steering accounted for more than half of the exports.
Electric Vehicle Transistion
After two years of surplus, there was a deficit in FY26 driven by imports of EV battery systems, cells, electronic parts and a shift towards premiumisation. Vijis expected the rise in imports to be a short-term development as there would be a strong push to localisation. The localisation of these parts is complex and takes time to localise; vehicle manufacturers were looking at the localisation of inner parts by Tier II and III vendors, he said.
Tarun Garg, MD & CEO, Hyundai Motor India, said Hyundai had completed 30 years in India and had emerged as India’s largest exporter in cumulative sales. It was exporting Made in India vehicles to 150 countries and had reached 13.5 million customers. Their ecosystem was also benefiting as many of their suppliers had gone global, Garg said. OEMs were expanding, and component makers must be prepared for this growth and drive innovation, he said.