India Electric Power Steering Market By Type (C-EPS, P-EPS, R-EPS), By Component (Steering Column, Steering Wheel, Sensors, Electronic Control Unit, Electric Motor, Bearings), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Region, Competition, Opportunities and Forecast, 2021-2031F

Market Overview:

India Electric Power Steering Market was valued at USD 2.19 Billion in 2025 and is expected to reach USD 3.37 Billion by 2031 with a CAGR of 7.41% during the forecast period. The India Electric Power Steering (EPS) market is witnessing robust expansion driven by increasing vehicle electrification, growing demand for fuel efficiency, and rising integration of advanced safety and comfort features in passenger vehicles. With stricter emission norms and rising fuel prices, automakers are prioritizing lightweight and energy-efficient components, making EPS systems a preferred alternative to hydraulic counterparts. Expanding GDP and growing disposable income are leading to increased consumer preference for technologically advanced and feature-rich vehicles, further fueling the demand for EPS-equipped models. For instance, India’s GDP expanded by 6.7% year-on-year in the first quarter of fiscal 2025 (Q2 CY2024), supported by early signs of rural consumption recovery despite mixed overall private consumption trends. However, industrial activity showed signs of deceleration, with the Index of Industrial Production (IIP) easing to 4.2% in June 2024 from 6.2% in May.

Market Drivers

Integration with Advanced Driver Assistance Systems (ADAS)

The increasing incorporation of Advanced Driver Assistance Systems (ADAS) in vehicles is creating a strong demand for intelligent steering solutions like Electric Power Steering (EPS). ADAS features such as lane keeping assist, adaptive cruise control, and automated parking rely heavily on precise and electronically controlled steering inputs, which hydraulic systems are unable to deliver. EPS, being entirely electronic, allows seamless integration with control units and sensors, enabling real-time steering adjustments necessary for driver assistance functionalities. Automakers and technology developers are continuously refining EPS systems to support higher levels of driving automation, making them central to the development of semi-autonomous and autonomous vehicles. For instance, India’s automotive sector is undergoing a pivotal shift with the Ministry of Road Transport and Highways mandating Level 1 ADAS features Advanced Emergency Braking, Driver Drowsiness Warning, and Lane Departure Warning—for new passenger vehicles with more than eight seats and select commercial vehicles starting April 2026, and for existing models by October 2026. This move aims to address India’s high road accident rate and aligns with global safety trends. The mandate is expected to drive major advancements in sensor integration, semiconductor demand, and software localization, supported by government programs.

Growth of Electric and Hybrid Vehicles

The shift toward electric and hybrid vehicles is accelerating the adoption of Electric Power Steering (EPS) systems due to their inherent compatibility with electrified powertrains. Unlike traditional hydraulic steering, EPS operates using an electric motor, making it ideal for battery-powered vehicles where eliminating mechanical pumps and fluid-based systems contributes to reduced weight and complexity. In electric vehicles (EVs), energy efficiency is critical, and EPS supports this objective by consuming power only during active steering input, thereby preserving battery life and extending driving range. The compact design of EPS units also allows for flexible vehicle architecture, which is essential in EV platforms. For instance, in 2024, India's electric vehicle (EV) industry achieved a significant milestone, with sales increasing by 26.5% year-on-year to 1.94 million units, according to Vahan data from the Ministry of Road Transport and Highways. This growth elevated the country's EV penetration to 7.46%, up from 6.39% in 2023. Despite this progress, traditional petrol vehicles remain dominant, comprising 73.69% of the 26.04 million vehicles sold in 2024. The average number of petrol, diesel, CNG, or hybrid vehicles sold per EV improved to 12.43, compared to 15.67 in 2023 and 21.05 in 2022.

Rising Vehicle Production

The growing volume of vehicle production is significantly contributing to the expansion of the Electric Power Steering (EPS) market. As automotive manufacturing ramps up across segments such as passenger cars, light commercial vehicles, and utility vehicles, the demand for advanced and efficient steering systems is scaling in parallel. EPS is increasingly being adopted as a standard feature due to its energy-saving capabilities, ease of integration with electronic systems, and compatibility with modern vehicle architectures. As production lines expand, automakers are streamlining component usage across models to improve cost efficiency, and EPS fits this strategy due to its adaptable design and minimal maintenance requirements.  For instance, India's automotive industry saw significant growth in the 2022-23 fiscal year, with total vehicle production rising to 25.93 million units, up from 23.04 million the previous year. Domestic sales of passenger vehicles surged by 27%, with utility vehicles seeing a notable increase of 34%. Sales in the commercial vehicle segment grew by 34%, driven by a 49% rise in medium and heavy commercial vehicle sales. Meanwhile, exports showed mixed trends, with passenger vehicle exports rising but exports of three-wheelers and two-wheelers declining.

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Key Market Challenges

High Cost of Advanced EPS Technologies

The adoption of Electric Power Steering systems, particularly those integrated with advanced features such as steer-by-wire, torque sensors, and fail-safe mechanisms, often involves significant cost implications for manufacturers. These sophisticated systems require high-precision electronic components, specialized actuators, and robust control software, all of which increase the production cost. For automakers operating in price-sensitive segments, this cost burden can be a major barrier to widespread implementation. While premium vehicles may absorb these expenses more easily, the cost constraints in mass-market models often limit the penetration of high-end EPS variants. This challenge becomes more complex when combined with the need for rigorous testing, regulatory compliance, and integration with existing vehicle platforms. Manufacturers are under pressure to strike a balance between introducing advanced steering technologies and maintaining competitive pricing.

Reliability Concerns in Harsh Operating Conditions

Electric Power Steering systems, though efficient and technologically advanced, face challenges in terms of reliability and performance under extreme driving conditions such as excessive heat, moisture, dust, and rough terrain. Unlike hydraulic systems that are inherently robust against environmental stressors, EPS units depend heavily on sensitive electronic components, sensors, and wiring, all of which can be vulnerable to damage or failure. Inconsistent voltage supply, electromagnetic interference, or water ingress can compromise the functionality of EPS systems, leading to steering issues or complete failure. For vehicles operating in demanding usage environments, such as commercial or off-road applications, the perception of EPS being less durable than traditional systems can deter adoption. Moreover, electronic failures in steering systems raise safety concerns, making durability a critical factor for regulatory scrutiny and consumer trust.

Key Market Trends

Emergence of Steer-by-Wire Systems

Steer-by-wire technology is emerging as a transformative trend in the Electric Power Steering landscape, replacing traditional mechanical linkages with fully electronic control systems. This innovation eliminates the physical connection between the steering wheel and wheels, allowing for greater design flexibility, enhanced safety features, and improved driving dynamics. Steer-by-wire systems enable real-time response customization, torque feedback adjustment, and integration with autonomous driving modules. By removing mechanical constraints, automakers can introduce foldable steering columns or reconfigurable cockpits, enhancing cabin space and user experience. Steer-by-wire also allows for more precise inputs and corrections, crucial for high-level ADAS and automated driving functionality. While the technology is currently seen more in luxury or concept vehicles due to cost and regulatory approvals, its long-term scalability is gaining attention. As system reliability improves and standardization progresses, steer-by-wire is expected to play a central role in shaping future mobility solutions.

Increasing Adoption of Modular EPS Platforms

The development of modular Electric Power Steering platforms is gaining momentum as manufacturers seek flexible, scalable solutions that can be adapted across various vehicle segments. Modular EPS designs allow OEMs to standardize components such as motors, sensors, and controllers while making configuration changes to suit different weight classes and performance requirements. This trend supports faster development cycles, cost efficiencies, and simplified integration for both conventional and electric vehicles. By adopting a modular approach, manufacturers can respond more effectively to diverse customer demands, regulatory changes, and product updates without the need for complete system overhauls. Modular EPS platforms also support easier incorporation of future upgrades, such as software-based steering enhancements or ADAS features, extending the system’s lifecycle and value. Suppliers are increasingly offering EPS modules that can be integrated into global vehicle platforms with minimal customization, helping OEMs reduce platform complexity and inventory challenges.

Integration with Vehicle Connectivity and Software Updates

The integration of Electric Power Steering systems with vehicle connectivity platforms is emerging as a significant trend, enabling over-the-air (OTA) software updates and diagnostics. EPS systems are now being developed with embedded control units capable of receiving performance enhancements, firmware updates, and predictive maintenance alerts through cloud-based interfaces. This integration allows automakers to continuously improve steering responsiveness, fault detection, and driver customization options without physical intervention. The trend reflects the broader move toward software-defined vehicles, where mechanical systems like steering are increasingly governed by adaptable code. Such connectivity also supports real-time data collection, which can be used to analyze driver behavior, road conditions, and component wear patterns, improving safety and user experience. The ability to remotely troubleshoot or recalibrate steering systems reduces service costs and vehicle downtime, offering a compelling advantage to both manufacturers and end-users. As connected vehicle infrastructure expands, the seamless integration of EPS with digital platforms will become a standard expectation.

Segmental Insights

Vehicle Type Insights

In 2025, passenger cars was expected to dominate the India Electric Power Steering (EPS) market by vehicle type. The growing consumer inclination toward personal mobility, combined with rising disposable income and expanding urbanization, is driving increased demand for passenger vehicles equipped with advanced features. EPS is rapidly becoming a standard in passenger cars due to its ability to improve fuel efficiency, enhance steering precision, and support integration with modern safety technologies such as lane keep assist and parking assist. Automakers are increasingly shifting toward EPS systems to reduce vehicle weight and meet evolving emission norms, especially in compact and mid-size car segments. As customer expectations evolve, comfort and ease of handling are influencing purchasing decisions, making EPS a critical component in the passenger car segment. For instance, In FY2025, India’s auto retail sector showed steady growth with Passenger Vehicles up 4.87%, Two-Wheelers at 7.71%, and Commercial Vehicles nearly flat at -0.17%. Rural demand outpaced urban across segments. March 2025 saw a -0.7% YoY dip but 12% MoM growth, driven by festive buying in the last week. Two-Wheelers fell -1.7% YoY but rose 11% MoM, while Passenger Vehicles grew 6% YoY and 15.5% MoM. CVs increased 2.68% YoY and 14.5% MoM. Dealers flagged concerns about high inventory, unrealistic targets, and cost pressures despite festive tailwinds.

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Region Insights

In 2025, the western region was projected to dominate the India Electric Power Steering (EPS) market. The presence of large-scale automotive manufacturing hubs and well-established vehicle assembly plants has contributed to strong demand for EPS systems. The region benefits from a mature automotive supply chain and proximity to port infrastructure, which supports both domestic production and exports. With rising vehicle output in this zone, EPS installations are increasing across passenger and commercial vehicle lines. Investments in electric vehicle platforms and steering component localization are reinforcing the western region’s leadership in driving EPS market growth.

Recent Developments

• ​In 2025, Zhejiang University researchers developed a laser-based method to fabricate thin-film temperature sensors capable of measuring –50 °C to 950 °C without protective coatings. The sensors showed just 1.2% signal drift over 20 hours at high temperatures, enabling integration into engine housings and pipelines for real-time thermal monitoring in harsh environments.
• In 2025, Design World highlighted how advanced sensors are transforming modern vehicles, with 50–200 sensors managing functions from drivetrain to cabin control. Innovations in magnetic, thermal, and motion sensing now support precise fluid regulation, battery safety, and real-time system monitoring in both ICE and electric vehicles.
• In 2025, Continental unveiled its new e‑Motor Rotor Temperature Sensor (eRTS), engineered to measure rotor temperatures directly inside permanently excited synchronous motors in electric vehicles—a first-of-its-kind advancement. The eRTS reduces measurement error from up to 15 °C (typical with software-based simulations) to just ±3 °C, enabling far more accurate thermal monitoring.
• In 2025, OSENSA introduced fiber-optic temperature sensors for electric vehicles, offering precise, EMI-immune thermal monitoring for motors, batteries, and inverters. The system ensures safe, fast, and reliable performance in high-voltage environments.

Key Market Players

• JTEKT Corporation
• Denso Corporation
• GKN Automotive Limited
• Hitachi Astemo, Ltd.
• Hyundai Mobis
• Mitsubishi Electric Corporation
• Nexteer Automotive
• NSK Ltd.
• Robert Bosch GmbH
• ZF Friedrichshafen AG

Report Scope:

In this report, the India Electric Power Steering Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•           India Electric Power Steering Market, By Vehicle Type:

o    Passenger Cars

o    Commercial Vehicles

•           India Electric Power Steering Market, By Type:

o    C-EPS

o    P-EPS

o    R-EPS

•           India Electric Power Steering Market, By Component:

o    Steering Column

o    Steering Wheel

o    Sensors

o    Electronic Control Unit

o    Electric Motor

o    Bearings

•           India Electric Power Steering Market, By Region:

o    North

o    South

o    East

o    West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Electric Power Steering Market.

Available Customizations:

India Electric Power Steering 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).

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