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Report Description

Report Description

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
  • OEM
  • Replacement

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]

Table of content

Table of content

1. Introduction

1.1. Research Tenure Considered

1.2. Market Definition

1.3. Scope of the Market

1.4. Markets Covered

1.5. Years Considered for Study

1.6. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary     

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Regions

4. India Automotive Components Market Outlook

4.1. Market Size & Forecast

4.1.1. By Value

4.2. Market Share & Forecast

4.2.1. By Vehicle Type Market Share Analysis (Passenger Cars and Commercial Vehicles) 

4.2.2. By Components Market Share Analysis (Engine Parts, Body & Chassis, Suspension & Brakes, Drive Transmission & Steering Parts, Electrical Parts and Equipment)

4.2.3. By Demand Category Market Share Analysis (OEM Vs Replacement)

4.2.4. By Regional Market Share Analysis

4.2.5. By Top 5 Companies Market Share Analysis, Others (2025)

4.3. India Automotive Components Market Mapping & Opportunity Assessment

5. India Passenger Cars Components Market Outlook

5.1. Market Size & Forecast       

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Components Market Share Analysis

5.2.2. By Demand Category Market Share Analysis

6. India Commercial Vehicles Components Market Outlook

6.1. Market Size & Forecast       

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Components Market Share Analysis

6.2.2. By Demand Category Market Share Analysis

7. Market Dynamics

7.1. Drivers

7.2. Challenges

8. Market Trends & Developments

9. Porters Five Forces Analysis

10. Policy and Regulatory Landscape

11. Economic profile

12. Key Market Disruptions

12.1. Pandemic

12.2. Conflicts

12.3. Trade Barriers

13. Competitive Landscape

13.1. Company Profiles

13.1.1. Bosch Limited

13.1.1.1. Company Details

13.1.1.2. Types

13.1.1.3. Financials (As Per Availability)

13.1.1.4. Key Market Focus & Geographical Presence

13.1.1.5. Recent Developments

13.1.1.6. Key Management Personnel

13.1.2. Samvardhana Motherson International Limited

13.1.3. Bharat Forge Limited

13.1.4. Sundaram-Clayton Limited

13.1.5. Amara Raja Batteries Limited

13.1.6. Exide Industries Limited

13.1.7. Varroc Engineering Limited

13.1.8. UNO Minda Limited

13.1.9. Endurance Technologies Limited

13.1.10. Pricol Limited

14. Strategic Recommendations

15. About Us & Disclaimer

Figures and Tables

Frequently asked questions

Frequently asked questions

The market size of the India Automotive Components Market was estimated to be USD 82.7 Billion in 2025

Rising vehicle production, government incentives for EVs, technological advancements, growing demand for lightweight components, and expanding export opportunities are the key factors driving the automotive components market growth.

Electrification, advanced driver-assistance systems, lightweight materials, digitalization of manufacturing, and increased focus on sustainable, smart, and connected vehicle components dominate market trends.

The western region leads due to its strong industrial base, advanced infrastructure, and concentration of manufacturing hubs supporting diverse automotive component production and supply chain networks.

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