Engines, transmissions, axles, brakes and electronics are largely sourced domestically at the larger OEMs, as the Daimler localization figure shows.
Battery cells and power electronics are the main import-dependent items for electric vehicles.
Bharat Forge illustrates the supplier picture. Its FY2026 standalone revenue was Rs 8,396 crore, and the company described Indian commercial vehicle demand as steady, aided by GST-driven momentum.
Its chairman, Baba Kalyani, said the company delivered a resilient performance despite market challenges and regulatory uncertainty.
The auto share of its business fell to 58 percent in FY2024 from 80 percent in FY2007. Bosch and Uno Minda report revenue for their whole automotive businesses, of which commercial vehicles are one part.
Opportunities lie in transmissions, such as the VECV plant, electric drivetrains for buses and light trucks, and aftermarket and connected-vehicle services, which grow with the fleet population and with uptime-focused service contracts.
Demand is likely to normalize from its GST-driven peak, with low single-digit growth rate expected for heavy trucks.
Opportunities are in infrastructure freight, light-vehicle electrification and localized component supply. Constraints include the higher base, fund-limited incentives, charging access and the cost of BS7 compliance.
Indicators to watch are monthly wholesale and registration trends, e-truck registrations beyond light vehicles, PM E-DRIVE disbursements, the final BS7 notification and the progress of the Daimler memorandum.
Dennis M is a Correspondent at The Industry Outlook, covering developments across India’s manufacturing landscape. His primary areas of focus include manufacturing equipment and machinery, along with industrial services and solutions supporting manufacturing operations. His work examines industry trends, technology adoption, investments and developments shaping the manufacturing ecosystem.
Published on: 19/10/2026
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