India Automotive Components Market Size and Industry Analysis Report by 2033
As indicated in the latest market research report published by IMARC Group, titled "India Automotive Components Market Report by Vehicle Type (Passenger Cars, Two-Wheelers, Three-Wheelers, Light Commercial Vehicles, Medium and Heavy Commercial Vehicles, Off the Road Vehicles), Component (Engine Parts, Body and Chassis, Suspension and Brakes, Drive Transmission and Steering Parts, Electrical Parts and Equipments), Demand Category (OEM, Replacement), and Region 2025-2033," the report presents a thorough review featuring the India automotive components market share growth, trends, and research of the industry.
Market Size & Future Growth Potential:
The India automotive components market size reached USD 55.90 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 80.53 Billion by 2033, exhibiting a growth rate (CAGR) of 4.14% during 2025-2033.
Latest Market Trends:
The India Automotive Components Market is in the midst of a significant transformation, shaped by rapid technological adoption, localization efforts, and the global transition toward sustainable mobility. The sector is witnessing rising demand for advanced materials, smart sensors, and lightweight parts designed to improve fuel efficiency and reduce emissions. Moreover, the integration of Industry 4.0 technologies such as automation, AI, and IoT has enabled component manufacturers to enhance precision, efficiency, and quality control.
Additionally, digital twins and predictive maintenance tools are becoming increasingly common, helping manufacturers minimize downtime and optimize production. In addition, the push toward electric vehicles (EVs) has opened new avenues for innovation in battery packs, motors, and power electronics. The aftermarket segment is also evolving, with consumers preferring branded, high-quality components over unorganized alternatives. As automakers emphasize local sourcing to strengthen supply chains, India’s component industry is emerging as a reliable global manufacturing hub with strong export potential.
Market Scope and Growth Factors:
The growth momentum of the India Automotive Components Market is being driven by several structural and policy-based enablers. A major catalyst is the government’s strong emphasis on domestic manufacturing under the Make in India and Atmanirbhar Bharat initiatives, which encourage local value addition and import substitution. Moreover, the Production Linked Incentive (PLI) scheme and FAME II program have spurred fresh investments in electric mobility and related components. Additionally, the rise in vehicle production, fueled by growing consumer demand and rising income levels, is generating sustained need for high-performance parts.
In addition, advancements in metallurgy, automation, and precision engineering are elevating India’s global competitiveness. The aftermarket segment, boosted by increasing vehicle ownership and longer life cycles, further contributes to steady revenue generation. Furthermore, collaboration between OEMs, tier-1 suppliers, and startups is fostering innovation in autonomous, connected, and electrified technologies. Together, these drivers signal a robust growth trajectory for India’s automotive components sector in both domestic and international markets.
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Recent News and Developments:
Government PLI Scheme Success: The Production Linked Incentive scheme has attracted actual investments of ₹20,715 crore as of September 2024, generating incremental sales of ₹10,472 crore in the automotive components sector
Investment Milestone Achievement: India and Mexico topped global automotive investments in H1 2025 with 22 and 34 projects respectively, driving USD 55.2 billion in global investment commitments
EV Component Manufacturing Surge: India produced 1 million electric vehicles in 2024, creating substantial demand for specialized EV components and battery management systems
Technology Partnerships: Japan announced plans to invest ₹5,95,884 crore (USD 68 billion) over 10 years in India, focusing on artificial intelligence and semiconductor technologies for automotive applications
Production Growth: Total vehicle production across all categories reached 3,10,34,174 units in FY25, demonstrating robust demand for automotive components
Incentive Disbursements: The government received incentive claims worth ₹322.12 crore from 4 PLI applicants during FY 2024-25, with ₹246.21 crore already disbursed to support manufacturing expansion
Export Performance: The automotive components industry continues to maintain strong export performance, with over 25% of production being exported to international markets
Sustainable Manufacturing: Leading manufacturers are increasingly adopting circular economy practices and incorporating recycled materials to meet stricter environmental regulations
India Automotive Components Market Outlook, Highlights & Segmentation Analysis:
Segmentation by Vehicle Type:
Passenger Cars
Two-Wheelers
Three-Wheelers
Light Commercial Vehicles
Medium and Heavy Commercial Vehicles
Off the Road Vehicles
Segmentation by Component:
Engine Parts
Body and Chassis
Suspension and Brakes
Drive Transmission and Steering Parts
Electrical Parts and Equipments
Segmentation by Demand Category:
OEM
Replacement
Regional Analysis:
North India
South India
East India
West India
Competitor Landscape:
The report offers an in-depth examination of the competitive landscape. It includes a thorough competitive analysis encompassing market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant.
Explore the Full Report with Charts, Table of Contents, and List of Figures: https://www.imarcgroup.com/india-automotive-components-market
Key highlights of the Report:
Historical Market Performance
Future Market Projections
Impact of COVID-19 on Market Dynamics
Industry Competitive Analysis (Porter's Five Forces)
Market Dynamics and Growth Drivers
SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
Market Ecosystem and Value Creation Framework
Competitive Positioning and Benchmarking Strategies
Major Advantages of the Report:
This report provides market leaders and new entrants with accurate revenue estimates for the overall market and its key subsegments.
Stakeholders can leverage this report to gain a deeper understanding of the competitive landscape, enabling them to strategically position their businesses and develop effective go-to-market strategies.
The report provides stakeholders with valuable insights into the market dynamics, offering a comprehensive analysis of key drivers, restraints, challenges, and opportunities.
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