Indian Auto Components

Indian Auto Components

Auto components, vital for a vehicle's functionality, safety, and performance, span diverse categories such as engine elements like pistons and valves, transmission parts including the gearbox and driveshaft, suspension components comprising shocks and control arms, brakes with brake pads and calipers, electrical parts like the battery and sensors, and cooling/HVAC elements. These systems collectively ensure efficient propulsion, smooth operation, controlled handling, safe braking, electronic functions, and optimal comfort within the vehicle.

The auto components market is expected to grow at a steady rate of around 6.2%. The growth of the auto components market in India is propelled by a confluence of key factors such as the steady expansion of the Indian automotive sector, fueled by rising consumer demands and increased disposable income. This has generated a heightened demand for advanced and innovative auto components. Moreover, the government's emphasis on policies promoting domestic manufacturing, such as "Make in India," has incentivized both local and global auto component manufacturers to establish production facilities within the country. Additionally, the growth of the electric and hybrid vehicle segment, driven by environmental concerns and regulatory frameworks, has created opportunities for specialized component production. For instance, By 2025, 4 million of EVs could be sold each year and 10 million by 2030.

• Based on product, the Indian Auto Component Market is segmented into Drive Transmission & Steering, Engine Components, Suspension & Braking, Electrical and Electronic Components, Consumables, Cooling System, Rubber Components. Among them, the drive transmission and steering segment is expected to hold a significant market share during forecast period. Engine Components and Electrical and Electronic Components were the other major revenue generating segment in 2022. Moreover, the investments by the companies will also help the market to grow at extensive rate. For instance, Bosch announced to invest INR 20 crore (US$ 2.84 million) between FY2020-2025 in its Robert Bosch Center for Data Science and Artificial Intelligence (RBC-DSAI) at the Indian Institute of Technology-Madras (IIT-M).
• Based on vehicle type, the Indian Auto Component Market is divided into Passenger Vehicles, 2-Wheeler, Medium and Heavy Commercial Vehicles, Light Commercial Vehicles, Tractors, 3-Wheeler, Earth Moving Equipment. Among these, passenger vehicle segment is expected to hold considerable share of the market during forecast period. The major factors such as growing disposable income of the populace and changing life style of the consumers are driving the growth of the segment.
• Based on market type, the market is bifurcated into OEMs, Aftermarket, and Export. Among these, Aftermarket segment will grow at high growth rate during the forecast period. The factors such as the increasing vehicle wear and tear, resulting from higher vehicle ownership rates and longer vehicle lifespans, drives the demand for replacement parts and components. Moreover, the growing awareness among vehicle owners about the importance of regular maintenance and repairs to ensure optimal performance and safety further boosts aftermarket demand.
• For a better understanding of the market adoption of the valve industry, the market is analyzed based on its worldwide presence in regions such as northern india, southern india, western india, and eastern india. Northern india is expected to dominate the valve market during the forecast period. Northern India is considered as one of the largest market for vehicles in India, providing major growth opportunity for the auto component manufacturer. Both domestic and export markets are almost similar in terms of potential share by different product types. Engine and Exhaust components along with Body & Structural parts are expected to make up nearly 50% of the potential domestic sales as well as export in 2021. In March 2021, the government announced to offer fresh incentives to companies making electric vehicles (EVs) as part of a broad auto sector scheme. The scheme is expected to attract US$ 14 billion of investment in the next five years. Further, to increase adoption of electric vehicles, the Indian government is expected to roll out new low-cost AC charging points, which will result in reducing the initial set-up cost. The price set for the low-cost EV charging point is Rs. 3,500 (US$ 47.79).
• Some of the major players operating in the market include Minda Industries Ltd; JBM Group; WABCO India Ltd; ZF Friedrichshafen AG; Bosch Limited; Varroc Group; Sundaram Fasteners Limited; Motherson.; Bharat Forge; Toyota Kirloskar Motor.