India’s auto industry is entering a rare moment of convergence, marked by strong domestic demand, rising global relevance, and a once-in-a-generation reshaping of automotive technology. India rose from being the sixth-largest vehicle market to the third- largest in the last decade. The auto component industry has anchored this, growing at ~17% annually over the past five years to reach ~$86 billion in FY26. This growth has come against the backdrop of multiple disruptions.
The next stretch is even more promising, but also more demanding. The sector aspires to reach ~$200 billion by FY30. But the market is fragmenting on multiple fronts, such as ICE and EV, mechanical and electronic, domestic and export, and each segment now rewards a distinct capability. Layered on top of this is uncertainty which is no longer occasional and is now woven into how the business runs.
The report explains that leaders are being pulled across several strategic axes simultaneously: invest ahead of demand or wait, diversify or deepen with existing customers. But most leadership time today still goes into keeping the business running rather than shaping where it goes next. It’s not surprise then, that a vast majority is highly optimistic about the future, 90% feel we are at the right place at the right time. The optimism is however grounded, ~78% of the sector also acknowledges that business today is tougher than it was earlier.
That said, the industry has a track record of overcoming challenges. The most striking finding is what outcomes resilience is able to drive. The companies that came out of the last decade strongest did not start with a margin advantage. Their edge was not a head start. It was, instead, the ability to bounce back faster than everyone else, year after year.
What comes next will look different for every company, depending on where it sits today, how fast it is growing, and how much complexity and volatility it already carries. The report outlines a ‘resilience roadmap’ that will help leaders place their own company on a maturity ladder and identify what to prioritize next across five levers: people and talent, supply chain, demand mix, value-add capability, and technology enablement.
