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The India - auto component market size is forecast to increase by USD 115.79 billion, at a CAGR of 25.7% between 2023 and 2028. The market growth analysis depends on several factors such as the growing middle-class population, the surge in demand for compact SUVs, and the government initiatives and policies for easy automotive industry setup procedures.
The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Channel, which comprises OEM, and aftermarket. Additionally, it categorizes Component into engine and suspension and braking, drive transmission and steering, electricals and electronics, body and chassis, and others, and covers Vehicle Type, including passenger vehicles, 2-wheelers, light commercial vehicles, medium and heavy commercial vehicles, and others. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing middle-class population is the key factor driving market growth. India's automotive industry is experiencing a surge in demand due to the increasing middle-class population in the country. Moreover, the emergence of the middle class has increased the demand for car ownership, resulting in a surge in vehicle sales in India. As disposable income increases and access to financing options becomes more accessible, Indian middle-class consumers are now able to purchase vehicles that were previously seen as luxurious. This has resulted in a shift in the automotive market towards a more traditional consumer base.
In addition, the changing consumer preferences have led to a shift in the way consumers purchase vehicles, with more emphasis being placed on features, convenience, and safety. As a result, manufacturers are responding to these demands by introducing models that are more cost-effective while still offering a wide range of features, particularly for the middle class. Thus, the increase in demand for public and private vehicles will in turn fuel the growth of the auto component market in India during the forecast period.
Increasing product launches is the primary trend shaping market growth. Market players are constantly launching new products to gain a competitive advantage over existing companies and new entrants. For instance, in January 2022, Tata Motors announced the launch of the advanced iCNG technology in the Tiago and Tigor. The Tiago iCNG and Tigor iCNG are powered by the Revotron 1.2L BS6 engine, which has the potential to generate a maximum power of 73PS. The launch helped Tata Motors in strengthening its position in the CNG market.
Similarly, with allied market trends and analysis, on 11 January 2024, Mahindra and Mahindra announced the launch of the introduced All-Electric XUV400 Pro range. The vehicle is also equipped with the company's Adrenox-connected car technology, offering a suite of over 50 features to enhance the driving experience. Therefore, such vehicle launches are driving the demand for auto components and further accelerating the growth of the market during the forecast period.
Supply chain disruption in the automotive industry is a challenge that affects market growth. The major factors contributing to the disruption of the supply chain are the shortage of raw materials, logistics, and geopolitical tensions, which are expected to impede the growth of the auto component market in India during the forecast period. The supply chain constraints prevailing in the market due to the global shortage of semiconductors and high logistics and inventory costs caused by the COVID-19 pandemic, which reduced the production of auto components, further negatively impacted the auto component market in India.
Furthermore, the US government has imposed trade restrictions with Russia, which has led to supply chain disruption and shortages of raw materials for the production of auto components. For instance, in India, the sales of passenger cars dropped by 7.84%, which was down to 2,38,096 units in February 2022 from 2,58,337 units in February 2021. The war has led to implications of adding to inflationary pressure and pricing pressure and ultimately dealing another blow to the automotive manufacturers in India. Thus, such factors may impede market growth during the forecast period.
The market research report includes the adoption lifecycle of the market growth and forecasting, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The OEM segment is estimated to witness significant growth during the forecast period. OEM refers to those companies that manufacture the original auto components such as brakes, steering, and other parts for newly constructed vehicles. OEM parts are made by a specific manufacturer to align with the exact specifications of the vehicle so that they fit perfectly into that space. Therefore, they are preferred by automobile manufacturers around the globe.
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The OEM was the largest segment and was valued at USD 31.99 billion in 2018. Furthermore, the buyers prefer auto components manufactured by OEM because the auto components offered by them are the same part as what was originally attached during the manufacturing process, which provides the buyers with the peace of mind of knowing how it will perform and its assurance quality. Therefore, due to these factors, the OEM segment of the India - auto component market is expected to grow during the forecast period.
The market report forecasts market research and growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2018 to 2028.
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India Auto Component Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 25.7% |
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Market Growth 2024-2028 |
USD 115.79 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
25.04 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
3M Co., AISIN CORP., Akebono Brake Industry Co. Ltd., Autoliv Inc., BorgWarner Inc., Brembo Spa, General Motors Co., HELLA GmbH and Co. KGaA, Hyundai Motor Co., Lear Corp., Magna International Inc., Marelli Holdings Co. Ltd., Robert Bosch GmbH, Schaeffler AG, Stellantis NV, Tenneco Inc., The Goodyear Tire and Rubber Co., Toyota Motor Corp., Valeo SA, and ZF Friedrichshafen AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Channel
7 Market Segmentation by Component
8 Market Segmentation by Vehicle Type
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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