India Passenger Vehicle Component Market Assessment, By Component Type [Engine and Engine Parts, Body/Chassis, Suspension and Brakes, Drive Transmission and Steering Parts, Electrical Parts and Equipment, Interiors, Others], By Vehicle Type [Hatchback, Sedan, SUVs, MUVs, Others], By Sales Channel [Original Equipment Manufacturer, Aftermarket], By Region, Opportunities and Forecast, FY2018-FY2032F

India passenger vehicle component market is projected to witness a CAGR of 6.95% during the forecast period FY2025-FY2032, growing from USD 35.33 billion in FY2024 to USD 60.47 billion in FY2032. 

India Passenger Vehicle Component Market Analysis and Forecast: Trends, Growth Drivers, and Future Opportunities

India passenger vehicle component market is projected to witness a&nbsp;CAGR of 6.95%&nbsp;during the forecast period FY2025-FY2032, growing from&nbsp;USD 35.33 billion&nbsp;in FY2024 to USD&nbsp;60.47 billion&nbsp;in FY2032. India is emerging as a global manufacturing hub, with numerous manufacturers and factories establishing production facilities nationwide. This trend contributes to the growth of the automobile industry and&nbsp;vehicle components market, coupled with boosting the nation&rsquo;s GDP. The development of the&nbsp;passenger vehicle components market is primarily led by rising per capita income and&nbsp;increasing population, fostering the sales of passenger vehicles. For instance, the production of passenger cars increased by 7%, while utility vehicles take up 56% of the total sales, which&nbsp;increased from 49%, due to the growing population and urbanization. Consequently, more vehicle components are required for passenger cars. Manufacturers are investing in research and development to upgrade technology. In addition, the automobile manufacturers are putting AI and hydrogen fuel cells in cars, which has put India in a prime position in the global market by opening manufacturing units. The rising population, increasing interest among youth in automobiles, increasing demand for electric vehicles, and focus on advanced technology have created a viable environment for the growth of the vehicle components industry in India in recent years. This increasing demand for sustainable manufacturing practices is pushing vehicle component companies to innovate more viable mobility components by entering into joint venture agreements and setting up manufacturing plants. Major Indian auto parts manufacturers export and partner with international companies.
For instance,&nbsp;in June 2024, Minda Corporation Limited, the flagship company of Spark Minda, signed a&nbsp;Joint Venture (JV) Agreement with HSIN Chong Machinery Works Co. Ltd. (HCMF) from Taiwan to innovate automotive sunroof and closure systems showcasing the industry's commitment to innovation and growth.
Emergence of Advance Technologies to Foster India Passenger Vehicle Component Market Growth
One of the notable technological advancements in passenger vehicles is the incorporation of 3D printing. This cutting-edge technology creates complex geometries and lightweight structures, which can lead to improved vehicle performance and fuel efficiency. Original equipment manufacturers (OEMs) are utilizing 3D printing for rapid prototyping, custom parts production, and even manufacturing certain components of electric vehicles (EVs). This technology reduces waste and accelerates the manufacturing process, leading to reduced manufacturing expenses, further propelling India's passenger vehicle component market growth in the forecast period. OEMs are efficiently integrating advanced technologies, including cutting-edge sensors, Internet of Things (IoT) gadgets, and real-time data analysis in their factories enhancing efficiency and adaptability. These interconnected setups enable manufacturers to oversee equipment performance, anticipate maintenance requirements, and fine-tune production timelines. To incorporate these technologies into passenger vehicles, Indian companies are collaborating through signing agreements and acquisitions to manufacture advanced auto components for the domestic and international markets.
For instance, in February 2022, Bharat Forge Limited along with subsidiary BF Industrial Technological &amp; Solutions Limited completed the acquisition of Coimbatore-based JS Autocast Foundry India Private Limited at an acquisition cost of USD 58.19 million. JS Autocast supplies automotive components, and critical machined ductile castings. This acquisition significantly enhances their capabilities in developing automotive components and sales in both domestic and foreign markets.
<h2>Rising Interest of Millennials in Passenger Vehicles to Drive Market Growth</h2>
The rising interest among millennials in owning a vehicle is driving the growth of the&nbsp;automobile and passenger vehicle component markets in India. They are particularly drawn to electric and luxury vehicles that signify status, quality, and a luxury lifestyle, propelling demand for high-performance passenger vehicle components. The rising disposable income of millennials and middle-class individuals, growing requirement for comfortable travel to their offices, and shift in consumer preferences for luxurious cars, coupled with looking for vehicles featuring 5-star components that reflect their identity and social stature, driving the passenger vehicle component market growth. Brands like Tesla and BMW are trendy among millennials due to their mix of performance and luxury coupled with efficient integration of supreme quality components, accelerating the demand for passenger vehicle components. Moreover, the younger generation is now exploring high-end products, preferring brands that offer new features and eco-friendly options that match their needs. Social media has a big influence on this trend and how millennials make their choices when purchasing their cars and installing advanced interior components in them. With the hype of electric vehicles among the youth, companies and new startups have started capitalizing on this trend.
For instance, in June 2024, Hyperflux was reported as India&rsquo;s first electric sportscar, which was developed by Zuperspeed Automotives. It features a coupe-style exterior with a closed cockpit design. The car will be priced between USD 8.62 million and USD 9.86 million.&nbsp;It is India&rsquo;s first electric sports car, which represents the rise of a new generation of Indian automotive enthusiasts who see cars as more than a mode of transport but as an extension of their passion, luxury, and personality.
<h2>Engine and Engine Parts Production to Poise Fair Share in the Market</h2>
The manufacturing of engines and engine parts is a&nbsp;vital component in the automotive industry and is expected to be one of the key segments within the passenger vehicle component market. Engine and engine parts are essential for a vehicle's performance, efficiency, and safety, making their manufacturing a key priority for manufacturers. As demand for vehicles continues to rise, the need for high-quality engines and engine parts also grows. Engine and engine parts alone account for approximately 31% of the total production value of automotive components. In recent years, advancements in technology have greatly improved the manufacturing processes for engine parts. Technology for automation and 3D printing allows for higher precision coupled with faster production times. These innovations enhance the quality of the parts and reduce costs, making it easier for companies to compete in the market. Moreover, the shift towards electric vehicles (EVs) and flex cars, which run on ethanol, is reshaping the automobile and engine and engine parts industry.&nbsp;Manufacturing engine parts to adapt to ethanol as a fuel is poised to play a vital role in the automotive industry. With technological advancements by companies, the rise of electric vehicles, and flex-fuel vehicles for passengers, manufacturers can capture a fair share of the market. Companies are investing in technological advancement and&nbsp;the&nbsp;adoption of electric and flex-fuel vehicles that place them in a perfect position to win an increasingly shifting market share.
For instance, in August 2024, Toyota unveiled its BS 6 Stage II Electrified Flex Fuel Vehicle. This innovative vehicle is based on the innovative engine and the Innova Hycross. It is engineered to adhere to India&rsquo;s stricter emission standards, marking it as the first-ever BS 6 (Stage II) Electrified Flex Fuel Vehicle prototype globally. An Electrified Flex Fuel Vehicle has both a Flexi Fuel engine and an electric powertrain. This gives it the&nbsp;ability to provide the&nbsp;dual benefit of higher ethanol use and much higher fuel efficiency, as is in the&nbsp;case of a Strong Hybrid Electric Vehicle (SHEV), which can provide 30-50% higher fuel-efficiency as it can run 40-60% in EV mode with the&nbsp;engine shut off.
<h2>Southern India Emerges as a Dominating Region</h2>
South India is an emerging region for the&nbsp;passenger vehicle component market, with new manufacturing plants being established in states such as Tamil Nadu and Karnataka. This region is currently experiencing remarkable growth, driven by technological advancements, the Digital India initiative, and a strong emphasis on automotive design and engineering. Additionally, government-backed investment opportunities are attracting international automotive component manufacturers to invest in the South Indian market. The favorable trade policy, including a 100% FDI allowance with no restrictions on imports and exports, supports the involvement of component designers and manufacturers in this region. The government has also introduced visionary policies, such as the Production Linked Incentive (PLI) scheme, aimed at boosting domestic manufacturing of advanced automotive technology products. As a result of these policies, many companies such as Tata Motors Group have signed a facilitation Memorandum of Understanding (MoU) with the Government of Tamil Nadu to explore setting up a vehicle manufacturing facility in the state. The MoU envisages an investment of USD 1,081.6 million over 5 years. The government is focusing on enhancing supply chains, improving accessibility, and streamlining distribution channels in South India. The increasing market size of the automotive sector in South India fosters ongoing partnerships between international companies and local brands, paving the way for further collaboration through joint ventures and mergers and acquisitions in the vehicle component industry.
For instance, in April 2023, a joint venture was established between TVS Group and BorgWarner Delphi-TVS Technologies, which outlined an investment plan totaling USD 4.5 billion. This capital investment initiative aims to support the brand's expansion efforts at its facility in Chennai.
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Future Market Scenario (FY2025 &ndash; FY2032F)
<ul>
<li>The nation's fuel transition policies, along with the major adoption of EV technology, are expected to enable auto part manufacturers to switch to the latest technologies.</li>
<li>The&nbsp;mission of the government of India, Atmanirbhar Bharat Abhiyan, is expected to deliver stimulus for the deployment of new manufacturing facilities.</li>
<li>The government is keen to attract foreign companies to collaborate and invest in India while supporting local manufacturers.</li>
<li>With the growing middle class and rising disposable incomes, the demand for vehicles is expected to rise in the coming future. This will further drive the demand for automotive components.</li>
</ul>
Report Scope
&ldquo;India Passenger Vehicle 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 passenger vehicle 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 6.95% between FY2025 and FY2032
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Revenue Forecast in FY2032
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USD 60.47 billion
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Segments Covered
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Component Type, Vehicle Type, Sales Channel
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Regions Covered
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North, South, East, West and Central
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Key Companies Profile
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Minda Industries Limited, Bharat Forge Limited, TVS Group (Sundaram Clayton Limited), Motherson Sumi Systems Limited, Automotive Axles Limited, Menon Bearings Limited, Endurance Technologies Limited, Rane Group, India Nippon Electricals Limited, and Hella GmbH &amp; Co. KGaA
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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 passenger vehicle component market&nbsp;has been segmented into the following categories:&nbsp;
<ul>
<li>Component Type
<ul>
<li>Engine and Engine Parts</li>
<li>Body/Chassis</li>
<li>Suspension and Brakes</li>
<li>Drive Transmission and Steering Parts</li>
<li>Electrical Parts and Equipment</li>
<li>Interiors</li>
<li>Others</li>
</ul>
</li>
<li>By Vehicle Type</li>
<li>Hatchback</li>
<li>Sedan</li>
<li>SUVs</li>
<li>MUVs</li>
<li>Others</li>
<li>By Sales Channel</li>
<li>Original Equipment Manufacturer</li>
<li>Aftermarket</li>
<li>By Region
<ul>
<li>North</li>
<li>South</li>
<li>East</li>
<li>West and Central</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
Key players in the automotive market are now focusing more on expansion and enhancement of their manufacturing capacity. With the&nbsp;growth in automobile sales and with rapidly evolving technology, especially in electric and flex-fuel vehicles, companies are strengthening their supply chains, increasing their distribution networks, and enhancing research and development activities on advanced automotive parts for EVs. To achieve this end, most of them are embracing mergers, acquisitions, and partnerships that help strengthen their production capacities and market presence.
As electric vehicles gain popularity among Indians, the demand for advanced vehicle components to support electric engines and other components will rise, which will open new opportunities for manufacturers to expand their production facilities. This encourages them to diversify their product portfolio to meet the changing market needs.
For instance, in February 2023, Rane Group secured new business orders worth USD 39.42 million. In it, they specifically garnered USD 17.62 million for automotive components in the EV segment during the first quarter of the fiscal year.
In March 2024, at Automechanika 2024, HELLA showcased innovative solutions addressing the complexities of modern vehicle repairs, including an&nbsp;extended range of brake spare parts and solutions for increasingly complex vehicle repairs.
Key Players Operating in India passenger vehicle component market are:
<ul>
<li>Minda Corporation Limited</li>
<li>Bharat Forge Limited</li>
<li>TVS Group</li>
<li>Motherson Sumi Systems Limited</li>
<li>Automotive Axles Limited</li>
<li>Menon Bearings Limited</li>
<li>Endurance Technologies Limited</li>
<li>Rane Group</li>
<li>India Nippon Electricals Limited</li>
<li>Hella GmbH &amp; Co. KGaA</li>
</ul>
Markets and Data&rsquo;s reports answer the following questions:
<ul>
<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>
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India Passenger Vehicle Component Market Assessment, Opportunities and Forecast, FY2018-FY2032F

Summary	India passenger vehicle component market is projected to be driven by rising per capita income, increased passenger vehicle production, growing demand for electric vehicles, and advancements in AI and machine learning technology.

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