Overview
- ACMA said Tuesday the industry posted 12.7% growth in FY26, reaching a turnover of ₹7.6 lakh crore on the back of stronger vehicle production and investments in capacity and technology.
- For the first time in two years the sector ran a trade deficit as exports rose 5% to $24 billion while imports jumped 13% to $25.4 billion driven by advanced electronics and EV components.
- Shipments to the United States held steady at $7.3 billion in FY26 despite Section 232 duties that levy roughly 25% on about half of shipments and 50% on the remainder.
- ACMA leaders said labour shortages followed the West Asia war, with higher urban energy costs prompting workers to return home and forcing some firms to offer retention measures such as cooking appliances.
- The association forecasts 8–10% growth for FY27 but warned that U.S. tariffs, an international enquiry into labour and subsidies, and heavy import reliance for EV/electronics parts pose near-term risks and could accelerate localisation or policy responses.