The Indian auto parts sector stayed steady in the initial half of FY26, maintaining growth by increasing 6.8% compared to last year, totaling Rs. 3.56 lakh crores (US$ 40.0 billion) between April and September, an increase from Rs. 3.33 lakh crores (US$ 37.4 billion) in the initial half of FY25. It continued mainly because of the higher sales in the local market, leading to a rise in revenue. OEM sales rose by 7.3% to Rs. 3.04 lakh crores (US$ 34.2 billion), driven by passenger cars, light commercial vehicles, and various other segments. This is complemented by the strong expansion in the aftermarket sector, which saw a rise of 9% to Rs. 53,160 crores (US$ 5.97 billion), mainly because of the rise in the number of vehicles on the road. Worldwide, exports stayed favorable, showing a 9.3% increase to US$ 12.1 billion in auto component exports, despite encountering challenges such as rising supply chain risks and costs. Nonetheless, the increase in imports, which climbed 12.5% to US$ 12.3 billion, exceeded that of exports. As a result, the trade balance reduced to a slight deficit of US$ 180 million compared to a surplus last year. The main export destinations continued to be the US and Germany, whereas China, Japan, and Germany were significant sources for imports. The uptake of electric vehicles, accounting for 4.6% of total deliveries to OEMs, is anticipated to signal a shift toward innovative mobility technology.