Press Release

India Automotive Components Market to Grow with a CAGR of 10.5% through 2031

Rising demand for electric vehicles, advancements in lightweight and durable materials, and increasing government support for automotive manufacturing are key market drivers. Technological innovations and growing export opportunities further boost growth. These are the factors driving the market in the forecast period.



According to TechSci Research report, “India Automotive Components Market – By Region, Competition, Opportunities & Forecast, 2021-2031F”, The India Automotive Components Market was valued at USD 82.7 Billion in 2025 and is expected to reach USD 136.0 Billion by 2031 with a CAGR of 10.5% during the forecast period. The automotive components sector is witnessing robust expansion driven by a surge in vehicle production and a heightened demand for modern, fuel-efficient cars. Progress in electric vehicle technology combined with tighter emission standards motivates producers to utilize lighter materials and engineer more efficient parts. Emphasis on vehicle safety and smart features like advanced driver-assistance systems is leading to industry evolution. Increasing production capabilities and focused investments in research and development are key contributors to market growth,

Emerging trends like vehicle electrification, digital integration, and the use of advanced composites are revolutionizing the design and manufacture of automotive parts. There is significant potential in producing components tailored for electric and smart mobility vehicles. Increased automation and Industry 4.0 implementation are improving manufacturing processes. The industry faces challenges such as volatile raw material costs, regulatory compliance, and fast-paced technological advancements. Global competition and supply chain vulnerabilities necessitate ongoing innovation and adaptable business strategies,

 

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India Automotive Components Market Is Segmented By Vehicle Type, By Component, By Demand Category, and By Region.

The automotive components market is segmented by vehicle type into passenger cars and commercial vehicles, each with distinct requirements and applications. Passenger cars demand a wide range of components designed for comfort, safety, performance, and aesthetics. These vehicles often incorporate advanced technologies such as infotainment systems, sophisticated safety features, and fuel-efficient engines. Components like engine parts, electrical systems, and suspension units are tailored to meet the needs of passenger cars, balancing performance with ride comfort and fuel economy. Lightweight materials and innovative manufacturing techniques are commonly employed to enhance vehicle efficiency and reduce emissions. The focus on enhancing driving experience, convenience, and environmental compliance drives continuous evolution in components for passenger cars.

Commercial vehicles include trucks, buses, and vans used primarily for transportation of goods and passengers in industrial, logistics, and public transport sectors. The components for commercial vehicles are engineered to withstand higher loads, longer operating hours, and demanding conditions. Durability, reliability, and ease of maintenance are critical factors in the design of parts such as heavy-duty engines, robust suspension systems, braking mechanisms, and drivetrain components. Commercial vehicles also incorporate specialized parts suited for cargo management, safety under heavy loads, and fuel efficiency in long-haul operations. The push toward cleaner commercial vehicles has led to the integration of alternative powertrains and emission control systems in this segment. Electrical and electronic components are increasingly important for meeting regulatory requirements and enhancing vehicle performance,

The northern region is emerging as the fastest-growing market for automotive components in 2025. This growth is supported by a rapidly expanding industrial base and increasing investments in automotive manufacturing and infrastructure. Several key cities in the north have developed robust ecosystems that include original equipment manufacturers (OEMs), component suppliers, and research and development centers. The presence of well-established transportation networks and connectivity to major highways facilitates efficient movement of goods and raw materials, supporting the supply chain dynamics critical to the automotive sector.

Investment in new manufacturing facilities and technology upgrades has enhanced production capabilities, enabling manufacturers to meet rising demand for both traditional internal combustion engine components and parts designed for electric vehicles. Skilled labor availability and government initiatives aimed at boosting industrial growth are encouraging more companies to establish or expand their operations in this region. Focus on clean energy and emission standards is prompting suppliers to innovate and adapt their product offerings, which contributes to the region’s rapid market expansion.


Major Market Players Operating in India Automotive Components Market Are:

  • Bosch Limited
  • Samvardhana Motherson International Limited
  • Bharat Forge Limited
  • Sundaram-Clayton Limited
  • Amara Raja Batteries Limited
  • Exide Industries Limited
  • Varroc Engineering Limited
  • UNO Minda Limited
  • Endurance Technologies Limited
  • Pricol Limited


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India’s automotive components market is witnessing consistent growth as the industry increasingly adopts advanced technologies that require high-performance, reliable parts. Components are essential across various vehicle systems, including powertrains, safety features, infotainment, and electric mobility solutions. The rising emphasis on vehicle electrification and intelligent technologies has spurred the development of components with enhanced durability, efficiency, and compactness to meet evolving automotive standards. Advances in materials and manufacturing techniques are improving the quality and reliability of these parts, enabling them to endure demanding operating environments and complex vehicle architectures. Increased investments in electric vehicle manufacturing and automotive electronics continue to drive the market’s upward momentum", said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“India Automotive Components Market By Vehicle Type (Passenger Cars and Commercial Vehicles), By Component (Engine Parts, Body & Chassis, Suspension & Brakes, Drive Transmission & Steering Parts, Electrical Parts and Equipment), By Demand Category (OEM Vs Replacement), By Region, Competition, Opportunities & Forecast, 2021-2031F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the India Automotive Components Market.

 

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India Automotive Components Market By Vehicle Type (Passenger Cars and Commercial Vehicles), By Component (Engine Parts, Body & Chassis, Suspension & Brakes, Drive Transmission & Steering Parts, Electrical Parts and Equipment), By Demand Category (OEM Vs Replacement), By Region, Competition, Opportunities & Forecast, 2021-2031F

Automotive | Jul, 2025

Rising demand for electric vehicles, increasing government investments in smart infrastructure, and growing consumer preference for advanced safety features are the factors driving the market in the forecast period.

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