Revenue across India’s auto ancillary sector expanded by 12.5% in fiscal year 2026, driven by robust volume growth and an improved product mix, according to a new report from Elara Capital.
The research firm highlighted a positive demand outlook for FY27, citing sustained market momentum that is expected to carry through into the next fiscal period.
In contrast, the forgings and batteries segments faced headwinds, posting degrowth of 4% and 1% respectively.
The growth was not uniform across all segments.
Tyres, lighting, and suspension components outperformed the broader sector, delivering a 17% increase in EBITDA.
In contrast, the forgings and batteries segments faced headwinds, posting degrowth of 4% and 1% respectively.
This divergence underscores a shift in consumer preference and OEM sourcing strategies toward higher-margin, value-added components.