India Auto Parts Market Size was valued at USD 58.2 Billion in 2022. The India Auto Parts Market industry is projected to grow from USD 61.1 Billion in 2023 to USD 90.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.0% during the forecast period (2024 - 2032). Population expansion and urbanization-driven vehicle demand growth are market drivers propelling the Indian India Auto Parts Market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Electric vehicles (EVs) have become a prominent phenomenon that is fundamentally altering the automotive industry worldwide, including the Indian market. Technological progress, environmental considerations, and favorable governmental regulations predominantly propel the transition to electric mobility. Anxious to reduce carbon emissions and reliance on fossil fuels, the Indian government has been actively promoting electric mobility via a variety of initiatives and policies. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) initiative, which was initiated in 2015 and subsequently expanded, provides manufacturers and purchasers of electric vehicles with subsidies and incentives. Furthermore, the government has established ambitious objectives, including a 30% electric vehicle penetration rate by 2030, which serves to reinforce the motivation for adopting electric mobility. The expeditious progressions in battery technology, charging infrastructure, and vehicle design have substantially bolstered the viability and appeal of electric vehicles. Enhanced battery efficiency, increased energy density, and decreased expenses have allayed apprehensions regarding electric vehicle (EV) range anxiety and initial investment, thereby expanding the consumer demographic that can afford EVs. In addition, infrastructure constraints are being resolved through the construction of fast-charging stations and battery-swapping facilities, which provide EV owners with convenient charging alternatives.
Increased environmental consciousness and apprehensions regarding air pollution have captivated consumers' attention, positioning electric vehicles as a more sustainable and environmentally friendly substitute for conventional internal combustion engine vehicles. Additionally, consumers are encouraged to contemplate electric vehicles for their transportation needs due to the lure of decreased operational costs, maintenance obligations, and governmental incentives. With consumers' evolving preferences towards vehicles that are both environmentally sustainable and technologically advanced, it is anticipated that the demand for electric vehicles will persistently rise. Indian automotive manufacturers, both domestic and international, are making substantial investments in the development and manufacturing of electric vehicles. Prominent automotive manufacturers such as Mahindra Electric, Hyundai, and Tata Motors are augmenting their lineups of electric vehicles by introducing customized models and variants for the Indian market. In addition, technology companies, automakers, and battery manufacturers are fostering innovation and accelerating the adoption of electric mobility solutions through strategic collaborations.
The India Auto Parts Market segmentation, based on the channel, includes OEM and aftermarket. Typically, the OEM category holds the most significant portion of the market in numerous automotive markets. OEM manufacturers produce vehicle components and parts in accordance with the vehicle's original design and assembly process. Vehicles have these components installed during the manufacturing process. As a result of the vast quantity of vehicles manufactured by major automotive manufacturers and the extensive supplier network they employ, the OEM sector frequently dominates. This segment's substantial market share is a result of contracts with major manufacturers and consistent demand for components used in the production of new vehicles.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The India Auto Parts Market segmentation, based on components, includes engine and suspension and braking, drive transmission and steering, electricals and electronics, body and chassis, and others. In numerous automotive markets, the Engine and Suspension Braking segment frequently maintains the greatest market share. This is predominantly because of the critical performance and safety implications that these components have for the vehicle. Fundamental to vehicle operation, engines, suspension systems, and braking mechanisms have a direct effect on ride quality, stopping power, and control. Furthermore, ongoing investment and innovation in these sectors are propelled by rigorous safety regulations and consumer expectations for improved functionality, which serve to reinforce their control over the automotive parts industry. Consequently, the segment comprising engines, suspension, and brakes generally holds the most significant portion of the market.
The India Auto Parts Market segmentation, based on Vehicle Type, includes passenger vehicles, 2 wheelers, light commercial vehicles, medium and heavy commercial vehicles, and others. Passenger vehicles are frequently the segment that holds the most market share in numerous automotive markets. The predominant factor contributing to this is the extensive utilization of passenger vehicles for individual transportation among diverse demographic groups. Passenger vehicles comprise a wide variety of motor vehicles, such as sedans, SUVs, hatchbacks, and crossovers, in order to accommodate the varied preferences of consumers. Sustained demand for passenger vehicles in the automotive market is attributed to various factors, including rising disposable incomes, expanding urban areas, and enhanced road infrastructure. These developments have effectively solidified the dominant position of passenger vehicles in terms of market share.
Prominent contributors to the substantial expansion of the automotive industry in India comprise demographic changes, economic progress, technological progress, and shifting consumer inclinations. An important factor propelling market expansion is the nation's burgeoning middle class and rising urban population. The development of urban areas and rising incomes contribute to an expanding need for personal mobility, which subsequently results in a surge in automobile sales. Furthermore, the enhanced connectivity and accessibility resulting from the Indian government's emphasis on infrastructure development, specifically in the road and highway domain, have served to invigorate the automobile market further.
Furthermore, the implementation of endeavors like "Make in India" has bolstered the domestic manufacturing sector and attracted capital investments from global and domestic automotive corporations. Consumer behavior and preferences are transforming due to the growth of shared mobility services, including ride-hailing and car-sharing platforms. Shared mobility service expansion is being driven by the need for cost-effective transportation alternatives and the escalating urban congestion, particularly in major metropolitan areas. The proliferation of technological innovations has given rise to the advent of connected automobiles that are outfitted with amenities, including real-time diagnostics, GPS navigation, and in-car entertainment systems. Increasing consumer demand for connected features is propelling the market for technologically advanced vehicles.
Leading market players are making significant investments in R&D to broaden their product offerings, which will support further growth in the India Auto Parts Market. In addition, market players are engaging in a range of calculated initiatives to increase their presence, with significant market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To expand and survive in a more competitive and rising market climate, the Auto Parts industry must provide reasonably priced goods.
Major players in the India Auto Parts Market are engaging in research and development activities in an effort to boost market demand includes 3M Co., AISIN CORP., Akebono Brake Industry Co. Ltd., Autoliv 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.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 58.2ย Billion |
| Market Size 2023 | USD 61.1 Billion |
| Market Size 2032 | USD 90.2 Billion |
| Compound Annual Growth Rate (CAGR) | 5.0% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Channel, Component, Vehicle Type, and Region |
| Countries Covered | India |
| Key Companies Profiled | 3M Co., AISIN CORP., Akebono Brake Industry Co. Ltd., Autoliv 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 |
| Key Market Opportunities | Growing government incentives and policies. Rising consumer awareness towards sustainability. |
| Key Market Dynamics | Expansion of urban areas increases demand for personal mobility. Government investments in road and highway infrastructure stimulate vehicle sales. |
Frequently Asked Questions (FAQ) :
The India Auto Parts Market size was valued at USD 61.1 Billion in 2023.
The market is projected to grow at a CAGR of 5.0% during the forecast period, 2024-2032.
The key players in the market are 3M Co., AISIN CORP., Akebono Brake Industry Co. Ltd., Autoliv 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, among others.
The OEM category dominated the market in 2023.
The engine and suspension and braking category had the largest share of the market.
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