New Delhi, February 10, 2026: The Automotive Component Manufacturers Association of India (ACMA), in collaboration with Boston Consulting Group (BCG), today released a joint study titled “Bolts, Bytes and Bots: Reimagining Next-Gen Auto Component Manufacturing in India”, which examines how digitalisation, automation and advanced analytics are reshaping India’s auto component manufacturing landscape.
The study comes at a defining moment for the industry. Having grown at ~14% CAGR over the last five years to reach nearly USD 80 billion, the Indian auto component sector is targeting exports of USD 100 billion by FY30. As global OEM expectations rise on quality, traceability, speed and sustainability, the study finds that Smart Factory adoption is no longer optional but central to competitiveness and global integration.
Commenting on the study, Vikrampati Singhania, President, ACMA, said “The findings clearly indicate that Smart Factory initiatives are moving from experimentation to execution across the sector. The next phase must focus on scaling these efforts across plants and the supplier ecosystem. This will require shared platforms, deeper partnerships and coordinated ecosystem development, where industry bodies like ACMA can play a catalytic role.”
Based on an industry survey of auto component manufacturers across segments and sizes, complemented by in-depth discussions with industry leaders and shop-floor teams, the study highlights a clear shift in mindset from isolated digital pilots to enterprise-wide transformation.
Elaborating how digitalisation and automation are an imperative to be competitive, Vinnie Mehta, Director General, ACMA, added, “What stands out is the structural shift in how digitalisation is being viewed no longer as a discretionary investment, but as a long-term lever for competitiveness. As the industry balances export growth, coexistence of multiple-powertrains and workforce challenges, smart manufacturing offers a practical pathway to improve reliability, productivity and quality using existing assets.”
The study also notes that companies adopting digital and automation solutions
are already seeing tangible improvements in operational visibility, quality outcomes, asset utilisation and responsiveness to customer requirements.
Sharing perspective on what this shift means for competitiveness, Vikram Janakiraman, Managing Director and Senior Partner, BCG, noted that “India’s auto component sector has led the charge on localization and import substitution over many years, building deep manufacturing capability and scale. Today, as growth accelerates across domestic and export markets, the challenge is managing both volume and complexity. It is promising to see that the sector has made a start by adopting Smart Factory initiatives, with Indian companies already realizing significant OEE improvements, quality gains, and better throughput from existing assets. Reimagining operations and supply chains, and building factories of the future, will be critical to unlocking the next wave of productivity and competitiveness for the sector.
