India Automotive Components Market Statistics, 2033
The India Automotive Component market was valued at $79,957.46 million in 2023 and is projected to reach $144,647.65 million by 2033, growing at a CAGR of 6.40% from 2024 to 2033.
The automotive component market encompasses the manufacturing, distribution, and sale of parts and components used in the production and maintenance of vehicles. It includes a wide range of products such as engines, transmissions, brakes, suspensions, electrical systems, and interior and exterior accessories. This market is a critical segment of the automotive industry, supporting both original equipment manufacturers (OEMs) and the aftermarket.
Key Takeaways
- On the basis of component, the engine components segment held the largest share in the India automotive component market in 2023.
- By vehicle type, the two wheelers segment was the major shareholder in 2023.
- By sales channel, the OEM segment dominated the market, in terms of share, in 2023.
- By propulsion, the ICE segment dominated the market, in terms of share, in 2023.
Automotive components are the individual parts or systems that combine to make a vehicle functional, safe, and efficient. Automotive components include engine parts, transmission systems, braking and suspension systems, electrical components, body parts, and interiors. They play a crucial role in performance, fuel efficiency, and safety, thereby catering to both Original Equipment Manufacturers (OEMs) and the aftermarket.
For instance, in November 2022, auto components maker Sona BLW Precision Forgings Ltd. announced that it increased its capex by $123.28 million (Rs. 1,000 crore) for its electric vehicles business. This investment by Sona BLW Precision Forgings Ltd. to boost its electric vehicles business emphasize the growing focus on EV-related components in India. Such significant capital expenditures not only enhance production capacity but also drive innovation in energy-efficient and advanced automotive parts.
For instance, in August 2023, Bosch allocated $58.11 million for research and development (R&D) and $58.11 million for capital expenses. This significant investment by Bosch in R&D and capital expenses highlights the company's commitment to innovation and expanding its capabilities in the automotive components sector. By focusing on developing advanced technologies and enhancing production capacity, Bosch is well-positioned to meet the growing demand for high-performance and energy-efficient components. Such investments not only strengthen the company's market presence but also contribute to the overall growth and competitiveness of the Indian automotive components market. Moreover, in August 2024, Amara Raja Energy & Mobility Limited through its group Amara Raja Advanced Cell Technologies signed an agreement with Ather Energy to develop and supply NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate) Lithium-Ion (Li-ion) and other advanced chemistry cells, produced locally at their upcoming Gigafactory in Divitipally, Telangana. This strategy helps to localize current global LFP technology for making Lithium-Ion cells specifically suited for Indian conditions.
The rise in demand in the domestic automotive sector is fueling the expansion of the automotive component market. Increasing vehicle production, rising consumer preferences for advanced features, and the shift toward electric and hybrid vehicles are driving the need for high-quality components, boosting growth in this crucial segment of the automotive industry. Furthermore, increase in investment in road infrastructure, and rise in demand for Electric Vehicles (EVs) have driven the demand for India automotive component. However, raw material price volatility is significantly impacting the growth of the Indian automotive component market. Fluctuating prices of essential materials such as steel, aluminum, and plastics increase production costs, making it challenging for manufacturers to maintain profitability and competitiveness. This unpredictability also affects supply chain stability and raises the cost of finished components, deterring both OEMs and aftermarket buyers. Such volatility poses a barrier to consistent growth, forcing industry players to adopt cost-cutting measures and explore alternative materials. Moreover, Stringent Environmental Regulations are major factors that hamper the growth of the India automotive component market. On the contrary, innovations in autonomous driving, connected vehicles, and advanced driver-assistance systems (ADAS) present a lucrative opportunity for the Indian automotive component market. As the automotive industry shifts toward smarter and safer vehicles, the demand for cutting-edge components such as sensors, cameras, LiDAR, and communication modules is rising. These technologies enable enhanced safety, connectivity, and automation, creating growth prospects for component manufacturers. With India’s push for advanced mobility solutions and global collaborations, this innovation wave positions the automotive component market for sustained expansion.
Segment Review
The India automotive components market is segmented on the basis of component, vehicle type, propulsion and sales channel. By component, it is categorized into engine components, body and exterior components, braking components, suspension components, steering components, exhaust components, transmission components and others. By vehicle, it is segmented into passenger cars, two wheelers, three wheelers, light commercial vehicles and medium and heavy commercials. By propulsion, it is divided into ICE, and electric. By sales channel, it is segmented into OEM and aftermarket.
By Components
On the basis of components, the engine component segment attained the highest market share in 2023 in the India automotive component market. This is due to their crucial impact on vehicle performance, fuel efficiency, and emissions control. With rise in vehicle production and growing demand for fuel-efficient engines, the need for advanced engine components continues to rise. Innovations in hybrid and electric powertrains further drive growth, as manufacturers seek more sustainable solutions. Stringent emission standards and a focus on environmental sustainability push the demand for advanced, high-performance engine components that meet regulatory requirements, making this segment central to India’s automotive industry.
By Component
Engine Components is projected as the most lucrative segment.
By Vehicle Type
On the basis of vehicle type, the two wheelers segment acquired the highest market share in 2023 in the India automotive component market. This is due to the increasing popularity and affordability of motorcycles and scooters, particularly in urban and rural areas. With a large population, high fuel prices, and rising traffic congestion, two-wheelers provide an economical and efficient mode of transport. The growing demand for electric two-wheelers is fueling innovation in components such as batteries, motors, and charging systems. The government’s push for electric mobility and the rising trend of e-commerce and delivery services further contribute to the segment's growth, making it a dominant force in the market.
The report focuses on growth prospects, restraints, and trends of the India automotive component market analysis. The study provides Porter’s five forces analysis to understand the impact of numerous factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the India automotive component market.
By Vehicle Type
Two Wheelers is projected as the most lucrative segment.
Competitive Analysis
The report analyses the profiles of key players operating in the India automotive component market such as Autoline Industries, Bharat Forge, Bosch Limited, CIE Automotive, Endurance Technologies, Hindustan Composites, JBM Auto, Lumax Industries, Motherson Sumi, PPAP Automotive, Rane Group, TVS Group, Bridgestone India, MRF, Amara Raja Energy & Mobility, and Exide Industries. These players have adopted various strategies to increase their market penetration and strengthen their position in the India automotive component market.
By Propulsion
ICE is projected as the most lucrative segment.
Rise in Demand in the Domestic Automotive Sector
The rise in demand in the domestic automotive sector is significantly enhancing the automotive component market. Surge in vehicle sales, driven by increase in income levels, urbanization, and a preference for personal mobility, are fueling the need for components such as tires, batteries, and advanced electronics. For instance, in February 2024, Mahindra & Mahindra Ltd. partnered with Volkswagen to enter into a supply agreement enabling Mahindra to incorporate key electric components from Volkswagen's open EV platform, including its advanced unified battery cell technology. This partnership marks Mahindra as the first external company to adopt Volkswagen's unified cell, a key element of the German automaker's EV strategy. The technology, designed for use in 80% of Volkswagen’s battery cells, aims to significantly lower costs by up to 50%. Mahindra plans to leverage these components for its INGLO electric platform.
In addition, the shift towards electric vehicles (EVs) is creating new opportunities, with increased demand for specialized parts such as lithium-ion batteries, charging systems, and lightweight materials. India's thriving aftermarket segment, supported by the aging vehicle population and the need for maintenance, further enhances the market. This growth is complemented by government initiatives such as the Production Linked Incentive (PLI) scheme, which encourages domestic manufacturing and technological innovation. Moreover, manufacturers are scaling up production capacity and investing in R&D to meet the evolving demands of the sector, positioning the automotive component industry as a vital contributor to economic growth. Therefore, rise in demand in the domestic automotive sector is driving the demand for the India automotive component market.
By Sales Channel
OEM is projected as the most lucrative segment.
Increase in Investment in Road Infrastructure
The increase in investment in road infrastructure is driving higher demand for the automotive component market. As governments and private players expand and modernize road networks, vehicle sales have surged, creating a ripple effect on the demand for components such as tires, batteries, and engine parts. Improved road conditions encourage the use of commercial vehicles for freight transport, further boosting the requirement for automotive components. For instance, in May 2024, Tata Motors Ltd., India's leading commercial vehicle manufacturer, planned to launch over 140 new products and 700 variants in the next fiscal year, reflecting a strong expansion strategy. This significant product is increasing the growth in the automotive components market, as increased production will require a substantial supply of parts such as engines, transmissions, and electronics. Moreover, the introduction of diverse vehicle variants tailored to different market needs will stimulate demand for customized components, creating opportunities for suppliers across the value chain. This alignment underscores the interdependence between vehicle manufacturers and component providers in catering to evolving market demands.
In addition, the rise in personal mobility, prompted by better connectivity, has led to higher vehicle ownership. Infrastructure upgrades also support electric vehicle adoption, amplifying the need for specialized components like EV batteries and advanced electronics. This infrastructure-driven growth has prompted component manufacturers to scale production and innovate to meet evolving market demands, solidifying the automotive component sector's role in supporting transportation expansion. Therefore, increase in investment in road infrastructure is driving the demand for the India automotive component market.
Rise in Demand for Electric Vehicles (EVs)
The rise in demand for electric vehicles (EVs) is significantly driving growth in India's automotive component market. As EV adoption accelerates, fueled by government incentives, environmental concerns, and advancements in EV infrastructure, the need for specialized components has surged. Key components such as lithium-ion batteries, electric drivetrains, charging systems, and lightweight materials are in high demand, creating opportunities for manufacturers to innovate and expand.
For instance, in September 2024, India's ambition to become the largest exporter of lithium-ion batteries within five years significantly boosted the automotive component market, particularly in the electric vehicle (EV) sector. The government’s $2,155.29 million Production-Linked Incentive (PLI) scheme and the development of gigafactories by companies such as Amara Raja, Exide Industries, and Ola Electric, is expected to increase domestic battery production. This expansion will not only localize battery manufacturing but also stimulate demand for critical EV components, such as electric drivetrains, charging infrastructure, and lightweight materials. Strengthening India’s battery production capabilities will support the growth of the automotive component market and the broader electric mobility ecosystem.
In addition, the focus on localization to reduce dependency on imports and promote domestic production has further boosted the market. Tier-1 and Tier-2 suppliers are scaling up operations to meet the growing requirements of EV manufacturers, while also exploring sustainable and cost-efficient solutions. This transformation is reshaping the automotive component landscape in India, positioning it as a critical hub for EV-related components and contributing to the broader shift toward sustainable mobility. Therefore, rise in demand for the electric vehicle (EVs) is driving the demand for the India automotive component market.
Raw Material Price Volatility
Raw material price volatility is a significant challenge for the Indian automotive component market, as it directly affects the cost structure and profitability of manufacturers. Fluctuations in the prices of essential materials such as steel, aluminum, rubber, and copper, which are key to producing automotive components, lead to uncertainty in pricing and margins. This unpredictability forces manufacturers to either absorb the additional costs or pass them on to consumers, potentially hindering competitiveness. Moreover, the automotive supply chain faces disruptions, as suppliers may struggle to secure consistent pricing or availability of materials. This volatility also limits the ability of companies to make long-term investment decisions, especially when margins become squeezed. As the automotive sector increasingly shifts towards electric vehicles (EVs), the rising demand for rare earth metals and lithium-ion battery materials adds another layer of complexity. Thus, raw material price volatility undermines the stability and growth prospects of the automotive component industry in India.
Rise In Investment in Building Driverless Vehicles Innovation in areas such as autonomous driving, connected vehicles, and advanced driver-assistance systems (ADAS)
Innovations in autonomous driving, connected vehicles, and advanced driver-assistance systems (ADAS) present lucrative opportunities for the Indian automotive component market. As global automotive trends evolve, there is a growing demand for components that enable these technologies, such as sensors, cameras, radar systems, electronic control units, and software. India, with its expanding manufacturing base, is well-positioned to tap into this trend by supplying these specialized components to both domestic and international vehicle manufacturers. Moreover, the development of ADAS requires precision components such as LiDAR sensors and vehicle-to-vehicle communication systems, which creates demand for highly advanced electronics and software.
For instance, in November 2021, according to the General Manager and Head of the Transportation Business Unit at Tata Elxsi, ADAS (Advanced Driver Assistance Systems) is expected to profoundly influence the automotive industry within the next 4-5 years. By utilizing sensors like cameras, radars, and lidars for functions such as lane-keeping and collision avoidance, ADAS is driving increased demand for specialized components. These technologies drive the need for advanced electronics, sensors, and software systems and offer substantial growth opportunities in the automotive component market.
In addition, as India pushes towards electric and smart vehicles, the need for innovative components in battery management systems, power electronics, and infotainment systems is increasing. This shift offers significant growth prospects for component manufacturers to innovate and supply high-tech products, positioning India as a key player in the future automotive ecosystem. Therefore, innovations in areas such as autonomous driving, connected vehicles, and advanced driver-assistance systems (ADAS), are providing lucrative opportunities for the India automotive components market.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the India automotive component market analysis from 2023 to 2032 to identify the prevailing India automotive component market opportunities.
- Market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the India automotive component market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the India automotive components market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as India automotive component market trends, key players, market segments, application areas, and market growth strategies.
Analyst Review
The India automotive components market is expected to witness growth driven by multiple factors, such as the increasing demand for vehicles, particularly in the passenger and commercial segments, fueled by rising disposable incomes and urbanization. In addition, the government's emphasis on electric mobility and its supportive policies, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) initiative, are accelerating the shift towards EV-specific components.
Furthermore, advancements in technology and the push for localization are enabling Indian manufacturers to enhance their competitiveness in global markets. Moreover, the rise of autonomous vehicles and connected car technologies is creating new opportunities for innovation in areas such as advanced sensors, communication systems, and software-driven automotive solutions. In August 2023, Bosch allocated $58.11 million for research and development (R&D) and $58.11 million for capital expenses. This significant investment by Bosch in R&D and capital expenses highlights the company's commitment to innovation and expanding its capabilities in the automotive components sector. By focusing on developing advanced technologies and enhancing production capacity, Bosch is well-positioned to meet the growing demand for high-performance and energy-efficient components. Such investments not only strengthen the company's market presence but also contribute to the overall growth and competitiveness of the Indian automotive components market.
The estimated industry size of India automotive components market was valued at $79,957.46million in 2023.
The growth rate of India automotive components is 6.4% from 2024 to 2033.
Two-wheelers is the leading vehicle type in India Automotive Components Market.
Electric is the fastest growing propulsion segment in India Automotive Components Market.
Bharat Forge, Bosch Limited, CIE Automotive, JBM Auto, Lumax Industries, Motherson Sumi are some of the leading players in India Automotive Components in 2023.
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