January 27, 2026; New Delhi: The Automotive Component Manufacturers Association of India (ACMA) applauds the Hon’ble Prime Minister of India, Shri Narendra Modi, on the signing of the historic India-European Union Free Trade Agreement (FTA). The agreement is a significant milestone towards strengthening India’s integration with global automotive value chains.
The European Union is India’s largest trading partner for goods and a key market for the Indian auto-components sector, accounting for nearly 30 percent of India’s component exports. Trade between India and the EU in auto components has remained broadly balanced, underlining the complementary strengths of the two regions.
At a time when global supply chains are undergoing major realignments, the India–EU FTA is expected to create a framework for resilient, trusted, and diversified supply chains. For India’s auto-component industry, the agreement will lead to enhanced export competitiveness, facilitate deeper technology collaboration, and attract long-term investments, while enabling European companies to leverage India’s fast-growing automotive market – the world’s third largest.
Commenting on the development, Vikrampati Singhania, President, ACMA and Vice Chairman & MD, JK Fenner (India), said, “The signing of the India–EU FTA is a timely and strategic step. For the auto-components industry, it has the potential to unlock new opportunities for exports, technology partnerships, and investment-led growth. As global OEMs and suppliers look to build resilient supply chains, a well-balanced and pragmatic FTA can position India as a reliable manufacturing and sourcing partner for Europe, while strengthening our long-standing industrial partnership.”
ACMA believes that a calibrated approach on tariffs, regulatory standards, and sustainability-related issues, including CBAM, will be critical to fully realising the agreement’s potential. The Association looks forward to working closely with the Government of India and European stakeholders to ensure smooth implementation and meaningful outcomes for the automotive ecosystem on both sides.
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About ACMA: The Automotive Component Manufacturers Association of India (ACMA) is the apex body representing the interest of the Indian Auto Component Industry. Its membership of over 1,100 manufacturers contributes more than 90% of the auto component industry’s turnover in the organized sector. In FY2025, the combined turnover of the Auto Component Industry stood at USD 80.2 billion with USD 22.9 billion in exports and a trade surplus of USD 500 million.
Trade India – EU Auto Components Trade:
(USD Bn)
| FY20-21 | FY21-22 | FY22-23 | FY23-24 | FY24-25 | H1 FY25-26 | |
| India’s Export to EU | 4.30 | 5.97 | 6.17 | 6.89 | 6.75 | 3.73 |
| EU’s Export to India | 3.50 | 4.88 | 5.19 | 5.4 | 5.77 | 3.01 |
