Strong export-led growth combined with demand for premium vehicles and alternative propulsion tech could drive the Indian auto component industry to a market size of $200 billion by 2030.
The Indian automotive components industry is poised for substantial growth, driven by India’s strategic global supply chain position, increasing demand for premium features, and advancements in alternative powertrain technologies. The industry’s market size is projected to expand from $74 billion in 2024 to $200 billion by 2030, growing at a 16% CAGR. Export markets will be the major growth driver, with exports projected to quintuple to $100 billion by 2030.
While the domestic market will remain key, exports are expected to surpass domestic demand, positioning India as a global hub for future mobility solutions. Domestic OEM sales and aftermarket sales are also forecast to rise significantly, reaching $89 billion and $16 billion, respectively, by 2030.
Key Findings from the Research
The report identifies three key segments driving opportunities for Indian auto component manufacturers: exports, domestic OEM sales, and aftermarket sales.
Exports
- Export revenues are expected to increase from $21 billion in 2024 to $100 billion by 2030, at a 30% CAGR.
- India’s auto component exports could grow five-fold, targeting key markets in North America, Europe, and Latin America.
- Electrification in developed markets will reduce demand for ICE components, creating opportunities for Indian SMEs to scale production.
- India has strategic advantages in non-powertrain components like bearings, rubber parts, and suspension systems and can also develop a competitive edge in high-value parts like exhausts and cabin components.
Domestic OEM Sales
- Vehicle sales in India are expected to grow from $99 billion in 2023 to $195 billion by 2030, at a 10-11% CAGR.
- Domestic OEM component sales will rise from $59.3 billion in 2023 to $89 billion by 2030.
- Increased consumer spending power, urbanization, and rising rural incomes will drive passenger vehicle and two-wheeler sales.
- Electric two-wheelers will account for over 50% of sales by 2030, while electric four-wheelers will make up 15%.
- India’s EV battery demand is estimated to reach 100 gigawatt hours by 2030, presenting opportunities across the Li-ion battery value chain.
- Software systems, particularly zonal electric/electronic (E/E) architectures, will become increasingly important for vehicle production.
Domestic Aftermarket
- India’s vehicle parc is expected to grow from 333 million units to around 430-435 million units by 2030.
- The domestic auto-component aftermarket is set to grow at a 6% CAGR to $16 billion by 2030, driven by an aging vehicle fleet and increasing vehicle parc.
- The passenger vehicle and commercial vehicle segments will each account for $5 billion, while the two-wheeler and three-wheeler segments will reach $4 billion by 2030.
- Premiumization, organized service marketplaces, and direct-to-consumer models will drive growth in the aftermarket segment.
