India automotive component Market Expected to Reach $144,647.65 Million by 2032-Allied Market Research

According to a recent report published by Allied Market Research, titled, “India automotive component Market by Component, Vehicle Type, Sales Channel, and Propulsion: Opportunity Analysis and Industry Forecast, 2024–2033,” 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, registering a CAGR of 6.40 % from 2024 to 2033.

The India automotive component market is witnessing significant growth driven by increasing government support through initiatives like the FAME scheme. This shift is prompting demand for components related to EVs, such as batteries, electric motors, and charging systems. For instance, 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. Moreover, the rise of advanced technologies such as autonomous driving, connected vehicles, and advanced driver-assistance systems (ADAS) is fueling demand for components such as sensors, cameras, radar, and communication modules.

In addition, surge in adoption of lightweight materials in automotive manufacturing. Components made from lightweight materials, such as aluminum and carbon fiber, help improve vehicle fuel efficiency and reduce emissions, aligning with stringent environmental regulations. Moreover, as consumers demand higher safety standards, the need for advanced safety components such as airbags, braking systems, and collision detection technologies is growing. For instance, in June 2024, Brakes India, a leading manufacturer of braking systems and components, partnered with Japan's AISIN Group company ADVICS, in a joint venture to develop and produce advanced braking solutions for the domestic light vehicle market. With an investment of $598.87 million over the next three years, the joint venture will focus on creating innovative braking solutions, starting with Electronic Stability Control (ESC) among the initial product offerings. This joint venture aims to enhance Brakes India's product portfolio and technological capabilities in the rapidly growing automotive component, catering to the increasing demand for advanced safety features in light vehicles. The shift toward electric and hybrid vehicles is also contributing to this growth, as these vehicles require specific braking technologies such as regenerative braking to maximize energy efficiency.

Furthermore, the rise in middle class and rising disposable incomes in India are also driving demand for automobiles and, consequently, automotive components. the expansion of the Indian automotive sector into global markets is boosting the demand for high-quality components, especially for export. Moreover, increase in vehicle production, rapid urbanization, and rising demand for commercial vehicles, particularly in sectors such as e-commerce and logistics. The Indian government's focus on infrastructure development, including improved road networks and smart city projects, further supports the demand for advanced automotive components. The market is benefiting from increased investment in R&D to create sustainable and high-performance solutions.

By sales channel, the OEM segment attained the highest market share in 2023. This is primarily due to their dominant role in vehicle production. They require a vast range of high-quality components for assembling vehicles, including engines, transmissions, electronic systems, and safety features. The increasing demand for vehicles, particularly from domestic consumers and export markets, further fuels the need for OEM components. OEMs often have long-term relationships with component suppliers, ensuring consistent demand. The shift towards advanced technologies like electric vehicles (EVs) and autonomous driving systems also boosts the OEM sector, leading to its higher market share.

By propulsion, the ICE segment attained the highest market share in 2023. This is primarily due to the widespread adoption of ICE-powered vehicles, which remain the dominant choice for consumers. Despite the growing interest in electric vehicles (EVs), the majority of vehicles in India still rely on traditional ICE technology. Components such as engines, exhaust systems, fuel injectors, and transmission parts are in high demand due to the extensive production and sales of ICE vehicles. The established infrastructure for ICE vehicles, lower initial costs, and widespread availability of fuel further contribute to the continued dominance of this segment.

Key Findings of the Study

• 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.

The key players operating in the India automotive component market include 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. They have adopted strategies such as contracts, agreements, acquisition, and product launch to improve their market positioning