India Auto Parts Market Research Report By End-User (OEM, Aftermarket) and By Distribution Channel (Offline, Online) - Forecast to 2035

India Auto Parts Market Overview:

As per MRFR analysis, the India Auto Parts Market Size was estimated at 70.09 (USD Billion) in 2023. The India Auto Parts Market Industry is expected to grow from 74.44 (USD Billion) in 2024 to 137.74 (USD Billion) by 2035. The India Auto Parts Market CAGR (growth rate) is expected to be around 5.754% during the forecast period (2025 - 2035).

Key India Auto Parts Market Trends Highlighted

The India Auto Parts Market is witnessing significant trends driven by the increasing demand for automobiles, a growing middle class, and the rise of urbanization. One of the key market drivers is the government's push for manufacturing initiatives like 'Make in India,' which encourages local production and innovation in the auto parts sector. This initiative aims to enhance the self-reliance of India's automotive industry, making it attractive for foreign investments and partnerships. The expansion of electric vehicles (EVs) also stands as a prominent driver, with the government promoting EV adoption through various incentives and infrastructure development, fostering a notable shift in auto parts demand towards electric components.

The Indian automotive sector is undergoing evolution and provides abundant scope for capturing market share. There is a shift towards eco-friendly materials which creates opportunities for green technology manufacturers focused on automotive components. Furthermore, the rising trends in the purchase of auto parts from online stores is an advantageous opportunity for e-commerce and digital marketplace companies as it allows easier access for boomers with disposable income. Recent advancements also show an increase in the consumption of sophisticated technologies like automation and digitization for newer-age manufacturing processes. The implementation of smart technology and IoTs is improving auto parts manufacturing in India and are transforming the entire logistics chain and increasing productivity.

This shift reflects a broader commitment within the Indian automotive industry to innovate and adapt to changing consumer preferences and technological advancements, ensuring the auto parts market remains dynamic and competitive.

Source: Primary Research, econdary Research, MRFR Database and Analyst Review

India Auto Parts Market Drivers

Rising Demand for Electric Vehicles

The shift towards electric vehicles (EVs) is significantly driving growth in the India Auto Parts Market Industry. The Indian government has set a target of having 30% of all vehicles be electric by 2030. This goal, as per the Ministry of Heavy Industries and Public Enterprises, is projected to require extensive development of charging infrastructure and specific auto parts to support the battery technology, electric drivetrains, and electric control units.

Major companies like Tata Motors and Mahindra Electric have already begun investing heavily in Research and Development for EV components, projecting potential increases in demand for electrical and electronic auto parts by over 20% by 2025. This transformation is indicative of the evolving consumer preference towards sustainable transport options, fostering a robust demand for related auto parts.

Government Initiatives and Policies

The Indian government's initiatives, including the Production-Linked Incentive (PLI) scheme, are catalyzing growth in the India Auto Parts Market Industry. This scheme, introduced to enhance domestic manufacturing of auto components, aims to bring investments of around 26 billion USD in various technology sectors by 2026. Associations like the Automotive Component Manufacturers Association of India (ACMA) reported that this initiative is expected to increase local production and help reduce dependency on imports by up to 30%.

This shift towards domestic production not only strengthens the supply chain but also creates thousands of jobs in the auto parts sector, indicating a conducive environment for business growth.

Increase in Vehicle Production and Sales

India is one of the largest automobile markets in the world, with vehicle production expected to reach 50 million units annually by 2025. As per the Society of Indian Automobile Manufacturers (SIAM), the sales of automobiles recorded a growth of approximately 14% year-on-year in recent years, indicating strong consumer demand. The rise in vehicle production directly correlates with an increased need for auto parts, making it a key driver for the India Auto Parts Market Industry.

Established automotive companies such as Maruti, Suzuki, and Hyundai are expanding their operations and ramping up production capacity, further boosting the requirement for auto components and subsequently driving market growth.

Technological Advancements in Manufacturing

Innovations in manufacturing technologies such as automation and artificial intelligence are transforming the landscape of the India Auto Parts Market Industry. According to the Confederation of Indian Industry (CII), the adoption of Industry 4.0 technologies is projected to enhance productivity in the auto parts manufacturing sector by up to 30% over the next decade. Leading manufacturers like Bosch and Siemens are investing in advanced manufacturing technologies to produce high-quality components more efficiently.

These advancements not only improve production processes but also contribute to shorter lead times and cost-effectiveness, ultimately expanding the market and enhancing competitive dynamics.

India Auto Parts Market Segment Insights:

Auto Parts Market End-User Insights

The India Auto Parts Market showcases a diverse End-User landscape, primarily segmented into Original Equipment Manufacturer (OEM) and Aftermarket channels. The OEM sector plays a vital role in the manufacturing of vehicles, providing essential components that adhere to strict quality and safety standards. This segment is crucial as it reflects the growth of automotive production, driven by increasing demand for vehicles across the country, supported by favorable government policies that promote manufacturing initiatives. As the automotive industry continues to evolve with advancements in technology and connectivity, the OEM segment's importance is further underscored by its emphasis on innovation and Research and Development to meet emerging market needs.

On the other hand, the Aftermarket segment is characterized by a vast range of products and services available for vehicle maintenance and repair. This sector is significant due to the growing fleet of vehicles on Indian roads, which creates ongoing demand for spare parts and accessories. Factors such as rising disposable income, urbanization, and a heightened focus on vehicle longevity contribute to the expansion of the Aftermarket. It is marked by a unique competitive environment where countless small and medium enterprises play a significant role alongside larger established players, thereby promoting price competitiveness and diversity in product offerings.

Both sections of the End-User market contribute to the overall health of the India Auto Parts Market, with OEM holding a major share due to its foundational role in new vehicle production, while the Aftermarket boasts a significant customer base dedicated to vehicle upkeep. The ongoing emphasis on sustainable automotive solutions is influencing both segments, as manufacturers and aftermarket providers alike are adopting eco-friendly practices and products to cater to a growing segment of environmentally conscious consumers. Overall, the dynamic interplay between OEM and Aftermarket segments within the India Auto Parts Market presents unique opportunities and challenges, highlighting the sector's importance in supporting the broader automotive industry’s growth trajectory in India.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Auto Parts Market Distribution Channel Insights

The Distribution Channel segment of the India Auto Parts Market has witnessed significant evolution, reflecting the dynamic nature of consumer behavior and technological advancements. The overall market is expected to grow, with an increasing preference for diverse purchasing options. Within this segment, offline channels historically have held a substantial share due to their established presence, allowing customers to physically inspect products before purchasing. However, the rise of online channels has become a noteworthy trend, driven by the growing internet penetration and the convenience offered to customers.

E-commerce platforms are facilitating easy access to a range of auto parts, allowing for quick comparisons and price checks, which enhances consumer convenience. The increasing trend of digitalization is spurring innovations in online retailing, attracting a younger demographic that prefers shopping through digital platforms. This shift towards online purchasing presents both opportunities and challenges for traditional retailers, emphasizing the need for a seamless integration of offline and online channels to cater to diverse consumer preferences.

The importance of the Distribution Channel segment is underscored by its direct impact on accessibility, customer engagement, and the overall growth trajectory of the India Auto Parts Market. With the evolving landscape, understanding market dynamics and consumer preferences remains crucial for stakeholders aiming to capitalize on the expanding market.

India Auto Parts Market Key Players and Competitive Insights:

The India Auto Parts Market has shown significant growth and competitiveness over the years, propelled by increasing vehicle production, rising demand for aftermarket services, and government initiatives aimed at boosting manufacturing under the Make in India initiative. The market is characterized by a diverse array of players ranging from multinational corporations to local enterprises, contributing to an intricate competitive landscape. Key factors influencing the market include technological advancements, investment in research and development, and a focus on sustainability, as companies strive to innovate their product offerings in line with changing consumer preferences and regulatory requirements. This competitive environment also reflects strategic collaborations, mergers, and acquisitions aimed at gaining a foothold in various segments of the market, further intensifying rivalry among firms.

Endurance Technologies has established itself as a prominent player in the India Auto Parts Market, renowned for its superior quality products ranging from suspension components to braking systems. The company's extensive product portfolio effectively caters to both the OEM and aftermarket segments, enabling it to solidify its position in the industry. One of Endurance Technologies' core strengths lies in its robust manufacturing capabilities, which are supported by several state-of-the-art production facilities strategically located across India. This geographical presence not only enhances operational efficiency but also promotes responsiveness to market demands. Additionally, Endurance's commitment to innovation is evident through continuous investment in R&D, which allows the company to remain competitive and meet the evolving needs of its customer base.

Cegelec India has carved a niche for itself in the India Auto Parts Market through its specialization in electrical components and systems, particularly for the automotive sector. The company offers a wide range of products and services, including electrical assemblies, wiring harnesses, and electronic control units that cater to both manufacturers and consumers. Cegelec India's strengths include its focus on quality assurance and adherence to international standards, which have fostered strong relationships with key market players. The company has also engaged in strategic mergers and acquisitions to enhance its technological capabilities and broaden its product offerings, thus maintaining a competitive edge within the market. Its continuous investment in innovation and technology positions Cegelec India as a vital contributor to the evolving landscape of the auto parts industry in India as it strives to meet the growing demands of the automotive market and ensure long-term sustainability.

Key Companies in the India Auto Parts Market Include:

• Endurance Technologies


• Cegelec India


• Mahindra and Mahindra


• Rane Group


• Bosch


• Balkrishna Industries


• Tata AutoComp Systems


• TVS Group


• Amara Raja Batteries


• Schaeffler India


• Hero MotoCorp


• Jtekt Corporation


• Genuine Parts Company


• Minda Industries


• Supreme Industries

India Auto Parts Market Industry Developments

The India Auto Parts Market has experienced significant developments recently, with notable growth in the performance and market valuation of several key players. Companies such as Endurance Technologies, Bosch, Mahindra and Mahindra are leading in innovation, focusing on electric vehicle components and sustainable production practices. In terms of mergers and acquisitions, March 2023 saw Rane Group acquiring certain assets of a local automotive components manufacturer to expand its portfolio. Additionally, Tata AutoComp Systems has been exploring strategic partnerships to enhance its technological capabilities in auto electronics, reflecting a broader industry shift towards digitalization. Current trends indicate a rising demand for electric and hybrid vehicles, compelling many firms like Hero MotoCorp and Balkrishna Industries to invest heavily in research and development to adapt to changing consumer preferences.

Over the last couple of years, India’s automotive industry has rebounded from pandemic-related disruptions, with an increase in production and sales, marking a positive outlook for the sector. The government has also announced various initiatives to bolster domestic manufacturing, which is expected to further energize the auto parts landscape. This dynamic environment continues to drive innovation and collaboration among key industry players.

Auto Parts Market Segmentation Insights

Auto Parts Market End-User Outlook

• OEM


• Aftermarket

Auto Parts Market Distribution Channel Outlook

• Offline


• Online

Report Attribute/Metric	Details
Market Size 2023	70.09 (USD Billion)
Market Size 2024	74.44 (USD Billion)
Market Size 2035	137.74 (USD Billion)
Compound Annual Growth Rate (CAGR)	5.754% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Endurance Technologies, Cegelec India, Mahindra and Mahindra, Rane Group, Bosch, Balkrishna Industries, Tata AutoComp Systems, TVS Group, Amara Raja Batteries, Schaeffler India, Hero MotoCorp, Jtekt Corporation, Genuine Parts Company, Minda Industries, Supreme Industries
Segments Covered	End-User, Distribution Channel
Key Market Opportunities	Growing electric vehicle demand, Expansion of e-commerce platforms, Increasing vehicle production, Rising aftermarket services, Government initiatives for manufacturing
Key Market Dynamics	Growing vehicle production, increasing aftermarket demand, rising electric vehicle adoption, government regulations and policies, technological advancements in manufacturing
Countries Covered	India