India Automotive Plastics Market - Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Country: (India)

India Automotive Plastics Market - Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Country: (India)

The necessity to minimize weight and enhance the performance of automobiles has consistently led to the substitution of metal parts with plastic ones.The market for automotive plastics in India is expected to grow from $2.12 billion in 2024 to $4.21 billion by 2031, reflecting a robust compound annual growth rate (CAGR) of 10.30%.

While plastic is porous compared to metals like steel, it boasts an excellent strength-to-weight ratio. Initially, plastics were mainly used for interior finishings in vehicles. Now, they are also utilized for external components such as doors, fenders, bonnets, and bumpers that were previously made from sheet metal and steel.

Market Outlook for Automotive Plastics in India

The automotive plastics market in India witnessed substantial growth over recent years, driven by the application of plastics in various vehicles and automotive components. The market experienced a temporary slowdown due to global pandemic restrictions, which led to decreased vehicle sales. However, since then, the demand for automotive plastic components has surged, aligning with the consistent growth in automotive sales.

Investments in research and development in the Indian automotive sector have increased the replacement rate of metal parts with plastic ones. This trend is expected to continue, propelling the sales of automotive plastic parts at a remarkable rate over the coming years.

Why is Consumption of Automotive Plastics Rising Rapidly in India?

Rising Demand for Electric & Hybrid Vehicles

Electric and hybrid vehicles are emerging as a significant trend, driving the growth of the automotive market. Advanced plastics and vehicle polymers are anticipated to play a crucial role in the future of mobility. The shift towards smart vehicles, coupled with enhanced performance and efficiency, is a key trend in this space. Automotive plastics not only reduce vehicle weight but also add value by replacing conventional batteries and parts with advanced lightweight materials. Hybridization, which combines gas and electric propulsion systems, makes vehicles lighter, saves space, and increases battery operating duration, thereby elevating the demand for plastics and plastic composites in India.

Need for Reduction in Vehicle Weight to Improve Mileage

The market is also expected to grow due to the increasing requirement for advanced safety measures such as airbags, lane departure warning systems, and other ADAS systems. Apart from aesthetic and functional properties, plastics contribute to vehicle safety. Plastic composite structures help make vehicles lightweight while preserving safety features. They are shock-, heat-, and pressure-resistant, which can help save lives during collisions. Tear-resistant plastic layers prevent damage, while clear and transparent polycarbonate plastic films provide UV resistance and reduce vehicle weight. Nylons, elastomers, and polyamides are extensively used in air ducts, suction pipes, and engine front covers, further reducing vehicle weight and improving fuel efficiency.

Steps Being Taken for a Carbon-free Future

Prominent vehicle plastic producers are working towards a carbon-free future by using recycled products. New products can be made using recycled content or plant-based biomass, reducing environmental impact. These products are more durable and possess similar properties to new components, such as resistance to chemicals, pressure, and heat. Companies are taking initiatives to reduce their carbon footprint by developing and launching products made from recycled materials. These products can be recycled again to make new items.

Expansions, mergers, and new product launches are primary drivers of market growth, enabling manufacturers to reach new heights and develop alternatives to conventional materials. Innovation strengthens a company’s market presence and helps expand its product portfolio.

Which Factors are Troubling Automotive Plastic Producers in India?

Volatility in Prices of Raw Materials, Environmental Impact, and Industry Regulations

The supply and prices of crude oil fluctuate due to political scenarios and geopolitical tensions. Raw material scarcity and price fluctuations affect the cost structure of the final product, potentially impacting the market negatively. The manufacturing process of automotive plastics emits gases that adversely affect the environment and produces by-products disposed of in water bodies or landfills, causing environmental harm. Extensive plastic usage is detrimental to nature as they take decades to decompose, and recycling involves complex processes.

Region-wise Insights

Growth Outlook for Automotive Plastic Suppliers across India

North India dominates the automotive plastics market in India, consuming almost 39% of the automotive plastics produced due to the presence of prominent manufacturers and their strong distribution networks. Major automotive companies have production plants in North India, contributing to high vehicle production in the region. Notable companies include BMW India Pvt. Ltd., Eicher Motors Limited, Ford India Pvt. Ltd., Federal-Mogul Goetze India Ltd., Hero MotoCorp Ltd., Honda Cars India Ltd., Hyundai Motor India Ltd., HD Motor Company India Pvt Ltd, India Yamaha Motor Pvt Ltd, and Maruti Suzuki India Ltd.

Category-wise Insights

Leading Product Type of Automotive Plastics

Polypropylene is expected to dominate the sales of automotive plastics across India, contributing significantly to the market valuation. It is used in various automotive applications, including gas cans, chemical tanks, wire insulation, and bumpers. For natural fiber composites, polypropylene serves as a thermoplastic binder component. Its high application in the automotive industry results in a prominent market share for polypropylene plastics.

Substantial Application of Automotive Plastics

The interior application of automotive plastics dominates the market, accounting for over 50% of the overall market share. In India, cars are considered long-term investments, with benefits reaped over many years. Interior automotive plastics are used in heating, ventilation, air conditioning, steering wheels, dashboards, seats, door panels, and other parts. As customers emphasize cabin experience, car interiors will assume a central role in the new automotive world.

Competitive Analysis

Prominent automotive plastic manufacturers are significantly investing in expansion strategies, establishing new manufacturing units, and boosting production capacity to meet the rising demand for automotive plastics. Value chain-connected enterprises are enhancing their R&D capacities to create new production technologies. For instance, in October 2022, BASF, Mercedes-Benz, Pyrum Innovations AG, and WITTE Automotive collaborated to produce automotive components from mass-balanced plastics. In April 2021, Solvay launched Amodel® Supreme PPA, a new segment of high-performance polyphthalamide (PPA) compounds ideal for e-mobility and metal replacement applications.

Key Companies Profiled

Prominent companies in the automotive plastics market include BASF SE, Sumitomo Chemical Co., Ltd., Saudi Basic Industries Corp, DuPont de Nemours, Inc., Prima Pvt. Ltd, Solvay SA, The Dow Chemical Company, LG Chem Ltd, Champion Plastics Pvt. Ltd, PVG Automotive Pvt. Ltd, G.V. INDUSTRIES, I-TECH PLAST INDIA PRIVATE LIMITED, Injecto Plast Pvt. Ltd., Omico Plastics, Inc., and Prime Plast.

India Automotive Plastics Industry Segmentation

Product Type:
• Polypropylene
• Polyurethane
• Acrylonitrile Butadiene Styrene
• Polyvinyl Chloride
• Polyethylene
• Polystyrene
• Polycarbonate
• Polyamide
• PMMA
• Plastic Composites
• Others

Vehicle Type:
• Three Wheelers
• Passenger Cars
Compact
Midsize
Luxury
SUVs
• LCVs
• HCVs
• Electric Cars
BEVs
HEVs
PHEVs

Application:
• Exteriors
Bumpers
Tailgates/Liftgates, Hoods
Body Hardware
Others
• Interiors
Seats
Dashboards
HVAC
Others
• Engine Surrounding
Engine Covers/Valves
Covers
Fuel Hoses/ Lines

Region:
• North India
• South India
• East India
• West India

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