The automotive component industry accounted for 2.5% of India’s GDP, generating employment for 1.6 million people. By 2025 the auto components industry will be contributing 5-7% of India’s GDP. It aims to be the industry leader in export and provide jobs to over 3.7 crore people. From 2016-2022, the industry recorded a CAGR of 6.5%, valued at U.S. $57 billion in 2022. The sector is expected to grow to U.S.$ 200 billion by 2027.
The automotive industry includes a wide range of companies involved in the designing, developing, manufacturing, marketing, and selling of motor vehicles. The essential components include the engine, gearbox, clutch, battery, brakes, radiator, steering, and suspension.
India has become the fastest-growing economy in the world in recent years. This fast growth helps boost infrastructure spending and increased manufacturing, which has expanded the automobile industry.
The automotive industry in India is leading various segments, firstly in commercial cars, utility vehicles, and two-wheelers. Automotive industry components will reach USD 200 bn in 3 to 4 years. The automotive market segment in India is expected to grow by USD 32 bn by 2026. The two-wheeler segment influences the automobile industry because of the Indian middle-class customer, with automobile sales standing at 18 million units in FY22.
The bureau of Indian standards has published standards for test specifications for Li-ion batteries and systems for electrically propelled road vehicles. The standard mark is ISO 17855:2022. BHEL has researched and developed India’s highest-rated autotransformer at the National High Power test Laboratory at Bina in Madhya Pradesh. A new benchmark is set in the global transformer industry.
Japan takes bilateral strategic initiative between India and Japan to promote, facilitate and retain Japanese investments in India. The Foreign Direct Investment inflow into the automotive industry stands at U.S. $35 billion from 2000-2022, according to the department of Promotion Industry and International Trade reports.
The automotive components industry in India is composed of organized and unorganized sectors. The organized sector refers to original equipment manufacturers and manufactures high-volume accurate instruments. At the same time, the unorganized sector comprises low-valued products catering to after-market service.
Large companies such as Rane Holding Ltd, Sundaram Clayton Ltd., Motherson Sumi System Ltd., Bosch Ltd., Endurance technology Ltd., Minda Industries Ltd., and WABCO India are the most dominant players in the industry Ltd.
These 7 companies hold most of the market and provide employment for thousands of skilled employees, and contribute a lion’s stake to India’s GDP.
Our Automotive and Transportation category segmentation encompasses:
Infotainment, Navigation, and Telematics Read More ▾
Driving Safety and Security Systems
Electric and Hybrid Vehicles
Automotive systems, and accessories