India Automotive Component Market Assessment, By Type [Engine Parts, Body and Chassis, Suspension and Brakes, Drive Transmission and Steering Parts, Electrical Parts and Equipment, Others], By Vehicle [Two-Wheelers, Passenger Cars, Commercial Vehicles, Others], By Demand [OEM, Replacement], By Region, Opportunities and Forecast, FY2018-FY2032F

India automotive component market is projected to witness a CAGR of 6.58% during the forecast period FY2025-FY2032, growing from USD 62.53 billion in FY2024 to USD 102.88 billion in FY2032. 

India Automotive Component Market Size, Trends, Forecast 2032

India automotive component market is projected to witness a CAGR of 6.58% during the forecast period FY2025-FY2032, growing from USD 62.53 billion in FY2024 to USD 102.88 billion in FY2032. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years owing to increasing production of electric and hybrid vehicles, a&nbsp;rapid trend of personalization, growing demand for lightweight automotive components, and surging demand for replacements in engines and motor cars. The demand for automotive components in India is projected to rise owing to a&nbsp;surge in the requirement for specialized components, increased emphasis on energy-efficient components and lightweight materials, and rising demand for autonomous vehicles. The growth of India automotive component market is expected to be fostered owing to the&nbsp;growing production of automobiles in emerging countries, surging sales of vehicles, and growing government schemes and initiatives in the automotive industry. For instance, in December 2023, the&nbsp;Government of India approved the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry across India to foster domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain with a budgetary outlay of USD 3.13 billion over five years.
The considerable rise in passenger car demand, advancements in automotive technologies, growing awareness concerning sustainable transportation, and surging demand for innovative and sophisticated automotive parts are projected to introduce new market growth opportunities for India's automotive component market players.
For instance, in August 2023, Bosch Ltd, the Indian subsidiary of German automotive supplier Robert Bosch GmbH, aims to enhance its manufacturing operations in India within the next two to four years. The technology supplier intends to raise the proportion of products manufactured locally to reduce its reliance on imported components, which contributed to a 12% rise in expenditure on traded goods in the previous quarter.
<h2 style="text-align: justify;">Rising Production of Electric Vehicles Drive India Automotive Component Market Growth</h2>
The rising production of electric vehicles, growing concern about sustainable transportation, the&nbsp;advent of connected car technology in EVs, and the&nbsp;shift in focus towards energy-efficient components are anticipated to foster the India automotive component market growth in the forecast period. Electric vehicles mandate different parts compared to conventional vehicles, including electric motors, batteries, and power electronics, creating new opportunities for automotive component manufacturers. Also, the rising EV market has led to increased funding for charging infrastructure and&nbsp;propelling requirements for different related components. In addition, the growing requirement for innovation in battery technology and energy management systems propels research and development, leading to the&nbsp;entrants of new suppliers and products in the Indian market for automotive components. Furthermore, companies in the market are efficiently planning to collaborate to launch high-performance electric vehicle components and address the rising demand for energy-efficient components.
For instance, in May 2024, Mitsubishi Electric Group, a&nbsp;leading manufacturer of automotive components in India, announced a&nbsp;collaboration with AISIN CORPORATION to launch electric vehicle parts, including energy-saving inverters, and address the rising requirement for innovative and high-performance components.
<h2 style="text-align: justify;">Technological Advancements in Automotive Component Drive Market Demand</h2>
Technological advancements in vehicle parts, the&nbsp;introduction of lightweight materials, rising demand for fuel-efficient components, and advancements in electronics and connectivity are projected to foster India automotive component market demand in the forecast period. Autonomous and connected vehicles feature an extensive range of electronic components, including cameras, sensors, and control units that improve convenience, safety, and entertainment. Features including lane departure warning, adaptive cruise control, and automatic emergency braking offer different benefits and enhance the overall driving experience of end users. In addition, governments across the globe are compelling companies to integrate advanced components, including electric motors, lithium-ion batteries, and regenerative braking systems, as these components reduce reliance on fossil fuels and lower emissions. Furthermore, companies in the market are introducing different advanced components to improve safety and pave the way for autonomous driving capability.
For instance, in January 2023, Hyundai Mobis, an Indian automotive component supplier, announced the launch of a level 3 integrated autonomous driving controller, a key component of level 3 or higher autonomous driving systems, to develop a remote support solution for self-driving.
<h2 style="text-align: justify;">Passenger Vehicles Dominate the India Automotive Component Market</h2>
Passenger vehicles dominate the market growth of automotive components in India owing to a&nbsp;significant rise in the&nbsp;production of passenger vehicles, an&nbsp;increase in disposable income, and an&nbsp;improving standard of living in emerging nations. The India passenger vehicles market demand is estimated to rise owing to an increase in the&nbsp;middle-class population in emerging countries, ongoing development of sophisticated digital and connectivity solutions in passenger vehicles, and rapid economic development in emerging countries. In addition, governments of emerging countries are pushing companies to integrate fuel-efficient components in passenger vehicles to reduce carbon emissions and improve overall operation efficiency. Furthermore, companies in the market are introducing cutting-edge auto components and planning to supply passenger vehicle components that satisfy changing customer and industry requirements.
For instance, in April 2024, Ramkrishna Forgings Limited, an Indian company, announced it won a deal to supply powertrain components to the largest passenger electric vehicle maker in the United States, Tesla.
<h2 style="text-align: justify;">Northern India Holds the Largest Market Size</h2>
The northern region of India plays a crucial role in the automotive component market, representing the largest market size in 2024. With a well-established automotive manufacturing ecosystem, this region hosts numerous manufacturing hubs and suppliers. The presence of leading automobile companies and component manufacturers fosters collaboration, enhancing the overall supply chain. High population density and urbanization in major cities like Delhi NCR, Chandigarh, and Jaipur drive demand for personal vehicles. As consumers increasingly seek modern and reliable transportation, OEMs respond with innovative offerings, generating significant demand for automotive components. Similarly, the southern region is home to a range of OEMs and component manufacturers, cultivating a robust vehicle and parts production ecosystem. This industry concentration promotes innovation and efficiency, facilitating the introduction of advanced technologies into the market. Together, these regions significantly contribute to the growth and development of the automotive component market in India. Furthermore, companies in the market are planning to establish manufacturing facilities in India to expand their&nbsp;network and dominate the market share.
For instance, in March 2024, E.V.R. Motors Ltd. inaugurated its new greenfield plant in Haryana, India, to supply coils for 20,000 motors every month, with plans to expand production to 100,000 motors to address the rising global demand for electric vehicles.
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Future Market Scenario (FY2025-FY2032F)
<ul style="text-align: justify;">
<li>With an increase in domestic and global vehicle manufacturing, India is witnessing a surge in demand for automotive components. The government&rsquo;s push for "Make in India" has further boosted local production.</li>
<li>The shift towards electric vehicles is driving demand for specialized components such as batteries, electric drivetrains, and power electronics. This segment is expected to grow significantly in the coming years.</li>
<li>Policies like the Production-Linked Incentive (PLI) scheme and favorable regulations for foreign investment are encouraging both domestic and international companies to set up manufacturing facilities in India.</li>
<li>The adoption of advanced technologies like AI, IoT, and automation in manufacturing processes is enhancing productivity and efficiency, making Indian component manufacturers more competitive.</li>
</ul>
Report Scope
&ldquo;India Automotive Component Market Assessment, Opportunities and Forecast, FY2018-FY2032F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of India automotive component market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between FY2025 and FY2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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Report Attribute
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Details
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Base Year of the Analysis
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FY2024
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Historical Period
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FY2018-FY2023
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Forecast Period
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FY2025-FY2032
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Projected Growth Rate
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CAGR of 6.58%% between FY2025 and FY2032
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Revenue Forecast in FY2032
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USD 102.88 billion
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Segments Covered
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Type, Vehicle, Demand
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Regions Covered
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North, South, East, West &amp; Central
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Key Companies Profile
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Bosch Limited, Uno Minda Limited, Samvardhana Motherson International Ltd., Endurance Technologies Limited, Bharat Forge Ltd., Sundaram Clayton Ltd, Automotive Axles Limited, Menon Bearings Limited, Rane Holdings Limited, HELLA India Automotive Pvt. Ltd.
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report,&nbsp;India automotive component market&nbsp;has been segmented into the following categories:&nbsp;
<ul style="text-align: justify;">
<li>By Type
<ul>
<li>Engine Parts</li>
<li>Body and Chassis</li>
<li>Suspension and Brakes</li>
<li>Drive Transmission and Steering Parts</li>
<li>Electrical Parts and Equipment</li>
<li>Others</li>
</ul>
</li>
<li>By Vehicle
<ul>
<li>Two-Wheelers</li>
<li>Passenger Cars</li>
<li>Commercial Vehicles</li>
<li>Others</li>
</ul>
</li>
<li>By Demand
<ul>
<li>OEM</li>
<li>Replacement</li>
</ul>
</li>
<li>By Region
<ul>
<li>North</li>
<li>South</li>
<li>East</li>
<li>West &amp; Central</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
Key companies in India's automotive component market are adopting various strategies to expand their product portfolios and enhance their market presence. Companies are investing in R&amp;D to innovate and develop new products, particularly in emerging areas like electric vehicles (EVs), advanced driver-assistance systems (ADAS), and smart automotive technologies. Collaborating with technology firms, startups, and other manufacturers allows companies to leverage complementary strengths, access new technologies, and enter new markets more efficiently. Many companies are broadening their product lines to include components for EVs, hybrid vehicles, and traditional combustion engines, ensuring they cater to a wider customer base.
In August 2023, Bosch Limited announced that it had relocated certain items, including spark plugs, from Russia to India. This strategic shift aims to enhance local manufacturing and adapt to changing geopolitical conditions in the auto components sector.
Key Players Operating in India Automotive Component Market are:
<ul style="text-align: justify;">
<li>Bosch Limited</li>
<li>Uno Minda Limited</li>
<li>Samvardhana Motherson International Ltd.</li>
<li>Endurance Technologies Limited</li>
<li>Bharat Forge Ltd.</li>
<li>Sundaram Clayton Ltd</li>
<li>Automotive Axles Limited</li>
<li>Menon Bearings Limited</li>
<li>Rane Holdings Limited</li>
<li>HELLA India Automotive Pvt. Ltd.</li>
</ul>
Markets and Data&rsquo;s reports answer the following questions:
<ul style="text-align: justify;">
<li>What is the current and future market size of the product/service in question globally or specific to different countries?</li>
<li>How are the markets divided into different product/service segments and the market size and growth of each segment?</li>
<li>What is the market potential of different product segments and their investment case?</li>
<li>How are the markets predicted to develop in the future and what factors will drive or inhibit growth?</li>
<li>What is the business environment and regulatory landscape specific to the product/service?</li>
</ul>
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India Automotive Component Market Assessment, Opportunities and Forecast, FY2018-FY2032F

India automotive component market is expected to experience growth due to increasing demand for passenger vehicles, rise in disposable income of middle-class individuals, stringent government regulations concerning carbon emissions, and technological advancements in vehicle technology. 

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