USD 1.7 Billion in Auto Ancillary Deals Recorded in Q3 2026
India's automobile ancillaries sector recorded USD 1.7 billion in deals during the third quarter of 2026, with electric vehicle investments identified as a primary growth driver, according to a report by The Federal published on 21 October 2026. The figure reflects sustained capital commitment across the supply chain, spanning components, battery materials and EV manufacturing.
Projects India tracks 372 live projects in the automobile ancillaries sub-sector, with two projects added in the last 90 days, pointing to a pipeline that continues to build even as several large investments move into active construction.
Active Projects: Battery Cells, Components and Steering Systems
Among the most capital-intensive projects currently tracked, Agratas Energy Storage Solutions Private Limited is constructing a lithium-ion cells manufacturing unit at Sanand, Gujarat, valued at Rs 13,000 crore. Escorts Kubota Limited has received approvals for a Phase 2 tractor manufacturing plant at Sector-10, Gautam Buddha Nagar, Uttar Pradesh, valued at Rs 4,500 crore.
Autoliv Inflators India Private Limited is progressing through approvals for an Rs 802 crore automotive component manufacturing expansion at Cheyyar, Tamil Nadu. JTEKT India Limited has begun construction on a steering and driveline expansion at Jalisana Village, Ahmedabad, Gujarat, valued at Rs 250 crore. Epsilon Cam Private Limited is in the planning stage for a Rs 250 crore lithium iron phosphate project at Kudithini, Ballari, Karnataka.
| Project | Promoter | Location | Value | Stage |
|---|---|---|---|---|
| Lithium Ion Cells Mfg Unit | Agratas Energy Storage Solutions Pvt Ltd | Sanand, Gujarat | Rs 13,000 crore | Construction Started |
| Tractor Mfg Plant — Phase 2 | Escorts Kubota Limited | Gautam Buddha Nagar, Uttar Pradesh | Rs 4,500 crore | Approvals Received |
| Automotive Component Mfg — Expansion | Autoliv Inflators India Pvt Ltd | Cheyyar, Tamil Nadu | Rs 802 crore | Under Approvals |
| Lithium Iron Phosphate Project | Epsilon Cam Pvt Ltd | Kudithini, Ballari, Karnataka | Rs 250 crore | Planning |
| Steering and Driveline — Expansion | JTEKT India Limited | Ahmedabad, Gujarat | Rs 250 crore | Construction Started |
| Electric Vehicle Mfg Project | Ultraviolette Automotive | Hosur, Tamil Nadu | Not recorded | Construction Started |
Where Activity Is Concentrated: State and Stage Breakdown
Karnataka leads all states in tracked automobile ancillaries projects with 82, followed by Maharashtra at 76, Gujarat at 44, Andhra Pradesh at 43, Tamil Nadu at 32 and Madhya Pradesh at 22. This distribution signals that suppliers and contractors with established presence in southern and western India are positioned closest to the largest share of active project activity.
By stage, 127 of the 372 tracked projects are under approvals — the largest single cohort — indicating a substantial volume of work that is approaching but has not yet entered procurement. A further 90 projects are in active construction, representing immediate demand for equipment, materials and contract labour. Fourteen projects have received approvals and are likely moving toward tendering, while 39 remain at the planning stage. Ten projects are currently on hold.
For suppliers calibrating where to focus business development, Karnataka, Maharashtra and Gujarat collectively account for more than half the tracked project count, and the under-approvals cohort of 127 projects represents the near-term conversion opportunity.
EV Supply Chain Drawing the Largest Commitments
The single largest project in the current tracked pipeline — the Rs 13,000 crore Agratas lithium-ion cells unit at Sanand — underlines how battery manufacturing has become a dominant capex theme within the broader auto ancillaries category. Ultraviolette Automotive's new EV manufacturing facility at Hosur, Tamil Nadu, is also in active construction, adding to a cluster of EV-related projects in the state. The Epsilon Cam lithium iron phosphate project in Karnataka, though at planning stage, further extends the battery materials thread running through the pipeline.
This concentration of EV-linked investment is consistent with the deal activity reported by The Federal, which attributed Q3 2026 growth specifically to EV investments rather than to conventional powertrain or component segments. Suppliers in battery materials, cell assembly equipment, thermal management and power electronics are therefore among those with the most immediate pipeline visibility. Further context on deal flow in the broader manufacturing space is available in coverage of Tenneco Clean Air's Rs 12,400 crore order book and Federal-Mogul Goetze India's capacity expansion plans.
What this means for suppliers and contractors
With 127 automobile ancillaries projects under approvals and 90 in active construction, the pipeline offers near-term opportunity across civil, mechanical and electrical contracting disciplines. Karnataka, Maharashtra and Gujarat are the three states with the highest project counts, making them priority geographies for supplier outreach.
Battery and EV-related projects represent the highest-value segment of current tracked capex, with the Agratas lithium-ion cell plant alone accounting for Rs 13,000 crore. Suppliers of cell manufacturing equipment, materials handling systems and specialised civil works for cleanroom-standard facilities are likely to see inquiry activity as these projects move from construction start toward full procurement.
Contractors active in Tamil Nadu should note the concentration of both EV manufacturing (Ultraviolette Automotive, Hosur) and component expansion (Autoliv Inflators, Cheyyar) in that state, alongside a broader tracked count of 32 projects. The under-approvals stage, representing 34 per cent of all tracked projects, is where early supplier engagement can establish position before formal tender processes open. The full automobile ancillaries project list and the wider Industrial Projects sector overview are available for further pipeline analysis.
Frequently asked questions
How much did India's auto ancillary sector record in deals in Q3 2026?
India's automobile ancillaries sector recorded USD 1.7 billion in deals during Q3 2026, according to a report by The Federal published on 21 October 2026. EV investments were identified as a primary driver of this deal activity.
Which states have the most automobile ancillaries projects in India?
Karnataka leads with 82 tracked projects, followed by Maharashtra at 76, Gujarat at 44, Andhra Pradesh at 43, Tamil Nadu at 32 and Madhya Pradesh at 22, according to Projects India data across 372 live projects in the sub-sector.
What is the largest automobile ancillaries project currently tracked in India?
The largest by recorded value is the Agratas Energy Storage Solutions lithium-ion cells manufacturing unit at Sanand, Gujarat, valued at Rs 13,000 crore and currently in active construction, as tracked by Projects India.
How many automobile ancillaries projects in India are in active construction?
Projects India tracks 90 automobile ancillaries projects at the construction-started stage out of a total of 372 live projects. A further 127 are under approvals, representing a substantial near-term pipeline for suppliers and contractors.
