Western auto suppliers under strain. Indian component makers are picking up the orders

auto parts imports from India to about 25%, from roughly 2%.Mint reported in December that stress among European auto part makers has created opportunities for Indian component manufacturers such as Sona BLW Precision Forgings (Sona Comstar) and Samvardhana Motherson.“Per companies’ management commentary, step-up in closure of EU foundries on labour shortage, rising energy cost, worsening financial stress is creating opportunity for Indian suppliers offering huge benefits on the inherent low manufacturing cost,” Emkay said in its 9 March note based on takeaways from management interactions.“The trend is intensifying, as EU OEMs (original equipment manufacturers) are aggressively seeking alternative sourcing options. In North America, Indian players offer 20-30% benefit despite tariff headwinds; this helps gain share with existing clients, catering to new clients,” they added.Chennai-based MM Forgings makes steel forgings for commercial and passenger vehicles, while Noida-based Uniparts India manufactures driveshafts and precision machine parts.

Chennai-based Nelcast produces components used in powertrains, braking systems, suspensions and chassis.The search for new suppliers also coincides with an improving demand outlook for commercial vehicles in Western markets. Major truck makers such as Volvo Trucks, Paccar and Traton have raised their volume guidance for 2026 by 3-6%.As demand picks up, automakers facing limited capacity and financial stress among existing suppliers are redrawing supply chains and expanding their vendor base, executives said.According to the Automotive Component Manufacturers Association of India, the country exported auto components worth $7.35 billion to North America and $6.75 billion to Europe