|
Forecast Period
|
2026-2031
|
|
Market Size
(2025)
|
USD 82.7
Billion
|
|
CAGR (2026-2031)
|
10.5%
|
|
Fastest Growing
Segment
|
Passenger Cars
|
|
Largest Market
|
West
|
|
Market Size (2031)
|
USD 136.0
Billion
|
Market
Overview
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 India automotive components
market is experiencing significant growth fueled by multiple factors.
Increasing vehicle production, especially in passenger cars and commercial
vehicles, is creating robust demand for diverse automotive parts. Technological
advancements in electric and hybrid vehicles are pushing manufacturers to
innovate components that enhance efficiency and reduce emissions. Consumers'
rising preference for vehicles equipped with advanced safety and infotainment
systems is also encouraging the development of more sophisticated components.
This evolving landscape is supported by automation and digitization trends in
manufacturing processes, improving productivity and quality while lowering
costs.
The market is witnessing notable trends that are shaping its trajectory.
Lightweight materials such as aluminum and composites are gaining traction to
improve fuel efficiency and comply with stricter emission regulations. The
shift toward electric vehicles is driving demand for specialized components
like battery packs, power electronics, and electric drivetrains. Suppliers are
increasingly focusing on modular designs and scalable solutions to cater to
diverse vehicle platforms. The Indian government approved a significant
investment for the establishment of a semiconductor manufacturing unit by
HCL-Foxconn along the Yamuna Expressway. This facility, with an investment of
Rs 3,706 crore, aims to produce essential display driver chips and supports the
broader electronics and automotive component supply chain. Opportunities
lie in the growing aftermarket segment, driven by increasing vehicle ownership
and extended vehicle lifespans. Emerging technologies such as 3D printing and
IoT integration are enhancing the customization and real-time monitoring of
automotive parts, offering new growth avenues for manufacturers and suppliers.
Market
Drivers
Growth in Vehicle Production
The increase in vehicle manufacturing directly fuels demand for
automotive components. As automakers ramp up production to meet consumer needs,
the requirement for engines, transmissions, electrical parts, and other
components expands proportionately. This surge is propelled by rising
disposable incomes and increasing vehicle ownership worldwide. Automakers also
diversify their portfolios by launching multiple models, which boosts component
demand further. Component manufacturers benefit from long-term supply contracts
and enhanced order volumes, creating a stable market environment. The
government sanctioned the construction of 2,877 EV charging stations across
multiple states and 1,576 stations along highways and expressways. This
expansion is part of a broader strategy to enhance EV infrastructure,
facilitating the adoption of electric vehicles. The proliferation of charging
stations necessitates the development and deployment of reliable connectors to
ensure efficient and safe charging operations, thereby driving market growth.
Shift Towards Electric Vehicles (EVs)
The transition from internal combustion engines to electric drivetrains
is reshaping the components landscape. EVs require specialized parts such as
batteries, electric motors, inverters, and cooling systems, presenting new
opportunities for component manufacturers. This shift also accelerates
innovation, as suppliers develop more efficient, lightweight, and sustainable
components. The demand for EV-specific components is expected to rise
exponentially with global commitments to reduce carbon emissions and phase out
fossil-fueled vehicles. The Indian electric vehicle market experienced a
substantial increase, with EV sales reaching 1.53 million units in 2023,
marking a 50% rise from the previous year. This surge is attributed to enhanced
consumer awareness, supportive policies, and the expansion of EV
infrastructure. As EV adoption grows, the demand for specialized connectors to
support high-voltage systems, battery management, and charging infrastructure
has escalated, directly impacting the automotive connectors market.
Increasing Safety and Emission Regulations
Strict government mandates on vehicle safety and emission levels drive
the need for advanced automotive components. Technologies such as airbags,
anti-lock braking systems (ABS), electronic stability control, and emission
control devices are becoming standard. Manufacturers must continuously upgrade
components to comply with evolving regulations. This ensures vehicles meet
safety and environmental standards, encouraging suppliers to invest in research
and development to deliver compliant, innovative solutions.
Rising Consumer Demand for Advanced Features
Modern consumers prioritize vehicles equipped with sophisticated
features including infotainment systems, driver assistance technologies, and
connectivity solutions. These preferences create demand for high-tech
components like sensors, cameras, control units, and software modules.
Suppliers focus on producing reliable and integrated parts that enhance user
experience, safety, and convenience, thus expanding the scope for innovation in
the components sector.
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Key
Market Challenges
Complex Supply Chains
Automotive component manufacturing involves multiple suppliers, raw
materials, and intricate logistics networks. Managing such complex supply
chains presents challenges related to timely delivery, quality control, and
cost management. Disruptions at any stage, whether due to raw material
shortages or transportation issues, can impact production schedules.
Manufacturers must implement efficient supply chain strategies and maintain
strong supplier relationships to mitigate risks.
High Research and Development Costs
Continuous innovation is essential to keep pace with technological
advancements and regulatory changes. However, R&D activities demand
significant financial investments in equipment, skilled talent, and testing
facilities. Smaller manufacturers often struggle to allocate sufficient
resources, limiting their ability to compete. The pressure to develop
cutting-edge components while maintaining affordability creates a challenging
balance for industry players.
Key
Market Trends
Integration of IoT and Connectivity
The rise of connected vehicles drives demand for components capable of
supporting real-time data exchange, diagnostics, and vehicle-to-everything
communication. Sensors, telematics units, and embedded software form the
backbone of these connected systems. This trend enables improved vehicle
safety, predictive maintenance, and enhanced user experiences, making
connectivity a key focus area for component manufacturers.
Use of Advanced Lightweight Materials
Manufacturers increasingly use materials like carbon fiber,
high-strength steel, and composites to reduce vehicle weight. These materials
not only improve fuel economy but also enhance performance and safety. Their
adoption necessitates new production techniques such as additive manufacturing
and precision molding, reflecting a broader industry move toward innovative
material science.
Electrification and Hybridization of Powertrains
Even traditional internal combustion engine vehicles are being fitted
with hybrid systems, boosting demand for components like electric motors,
batteries, and power electronics. This hybridization trend acts as a bridge
technology, allowing manufacturers to gradually shift toward full
electrification. Component suppliers invest in hybrid-compatible parts to stay
relevant amid changing powertrain dynamics. The National Policy on
Electronics aims to boost India's electronics manufacturing sector, targeting a
market size of USD 400 billion by 2025. This policy encourages investment in
electronics manufacturing, including automotive components. The
government's focus on enhancing domestic production capabilities supports the
growth of the automotive market by ensuring a steady supply of locally
manufactured components.
Segmental
Insights
Component Insights
The automotive components market is categorized by various parts
essential for vehicle assembly and performance. Engine parts, including
pistons, valves, and camshafts, are vital for converting fuel into power, with
ongoing improvements focusing on fuel efficiency, emission reduction, and
durability through advanced materials and manufacturing techniques. Body and
chassis components, such as doors, frames, and bumpers, provide structural
support, safety, and aesthetic appeal. Manufacturers are increasingly using
high-strength steel and composites to reduce weight while maintaining safety,
along with corrosion-resistant coatings and aerodynamic designs to enhance
vehicle stability and longevity.
Suspension and brake systems play a critical role in ride comfort,
handling, and safety. Suspension components absorb road shocks and maintain
tire contact, while brake parts ensure effective stopping power. Innovations
like electronic braking and regenerative brake systems are transforming this
segment, alongside advancements in suspension for smoother rides. Drive
transmission and steering parts are responsible for power delivery and vehicle
control. These include gearboxes, clutches, and steering units, with
technological progress aimed at improving efficiency, minimizing mechanical
loss, and integrating features such as electric power steering and autonomous
driving capabilities
Electrical parts encompass batteries, sensors, wiring harnesses, and
lighting systems that manage power distribution, safety, and infotainment. The
rise of vehicle electrification and connectivity has increased the complexity
and demand for electrical components. These technologies support advanced
driver-assistance systems, vehicle communication, and enhanced passenger
experience, driving continuous innovation within the automotive components
sector.
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Regional
Insights
West
The western region continues to maintain its importance due to its
well-established industrial ecosystem and comprehensive infrastructure. This
area hosts a significant number of manufacturing plants and supplier units that
serve various segments of the automotive industry. The presence of advanced
logistics networks and proximity to major ports facilitates efficient movement
of raw materials and finished components, ensuring smooth supply chain
operations. The concentration of skilled labor and technical expertise further
supports high-quality production and innovation in component manufacturing.
Investments in automation and modern manufacturing technologies are evident,
allowing the region to maintain competitiveness and adapt to evolving market
requirements.
South
The southern region complements this landscape by leveraging its growing
industrial zones and expanding manufacturing capabilities. It has developed a
strong base in producing components for both domestic and export markets,
driven by increasing investments in infrastructure and technology. The region
benefits from a skilled workforce and educational institutions that focus on
automotive engineering, fostering innovation and technical advancements. The
availability of raw materials and government initiatives promoting industrial
growth contribute to the expanding manufacturing activities in this area. Port
connectivity and efficient transportation networks enable smooth logistics,
supporting timely delivery and export opportunities. Emerging trends such as
electric vehicle component production and adoption of advanced materials are
visible, with manufacturers in the southern region actively embracing these
changes to cater to future demands.
Recent
Developments
- In early 2024, E.V.R. Motors Ltd. inaugurated a new greenfield plant in
Haryana, India, dedicated to producing coils for electric vehicle motors. The
facility commenced operations with an initial capacity to supply coils for
20,000 motors per month, with plans to scale up production to 100,000 motors
monthly. This expansion aligns with the growing demand for EV components and
supports India's push towards sustainable mobility.
- In May 2025, Lumax Auto Technologies completed the acquisition of the
remaining 25% stake in IAC International Automotive India (IAC India), a key
supplier of integrated cockpits and door panels to major OEMs. This move
strengthens Lumax's position in the automotive component market and allows for
better integration of operations, enhancing supply chain efficiency and product
offerings.
- VinFast, a Vietnamese electric vehicle manufacturer, broke ground on its
first integrated EV manufacturing facility in India in February 2024. Located
in Thoothukudi, Tamil Nadu, the plant is designed to have an annual production
capacity of up to 150,000 vehicles. This facility aims to cater to the growing
demand for premium electric SUVs in India and is part of VinFast's strategy to
establish a comprehensive EV ecosystem, including battery production and
charging infrastructure.
- In March 2025, Pravaig, an Indian electric vehicle manufacturer, was
awarded the Ministry of Defence's Innovation in Defence Excellence (iDEX) award
for its VEER Electric Tactical All-Terrain Vehicle (E-TATV). This recognition
highlights the company's advancements in electric mobility solutions and its
contributions to the defense sector, showcasing the versatility and potential
of electric vehicles in various applications.
Key
Market Players
- 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
|
By Vehicle
Type
|
By Component
|
By Demand
Category
|
By
Region
|
- Passenger Cars
- Commercial Vehicles
|
- Engine Parts
- Body & Chassis, Suspension & Brakes
- Drive Transmission & Steering Parts
- Electrical Parts and Equipment
|
|
|
Report
Scope:
In this
report, the India Automotive Components Market has been segmented into the
following categories, in addition to the industry trends which have also been
detailed below:
·
India Automotive Components Market, By Vehicle Type:
o
Passenger Cars
o
Commercial Vehicles
·
India Automotive Components Market, By Component:
o
Engine Parts
o
Body & Chassis, Suspension & Brakes
o
Drive Transmission & Steering Parts
o
Electrical Parts and Equipment
·
India Automotive Components Market, By Demand
Category:
o
OEM
o
Replacement
·
India Automotive Components Market, By Region:
o
North
o
East
o
West
o
South
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the India Automotive Components
Market.
Available
Customizations:
India
Automotive Components Market report with the given market data,
Tech Sci Research offers customizations according to the company’s specific
needs. The following customization options are available for the report:
Company
Information
- Detailed analysis and profiling of additional
market players (up to five).
India
Automotive Components Market is an upcoming report to be released soon. If you
wish an early delivery of this report or want to confirm the date of release,
please contact us at [email protected]