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Title India Auto Parts Manufacturing Market Growth and Report by 2033
Category Automotive --> Automotive Parts
Meta Keywords auto parts mfr
Owner SAKSHI BAHANDARI
Description

As indicated in the latest market research report published by IMARC Group, titled "India Auto Parts Manufacturing Market Size, Share, Trends and Forecast by Component Type, Sales Channel, Vehicle Type, and Region, 2025-2033" this report provides an in-depth analysis of the industry, featuring insights into the market. It encompasses competitor and regional analyses, as well as recent advancements in the market. the report offers a comprehensive analysis of the industry, including India auto parts manufacturing market growth, share, trends and regional insights.

Market Size & Future Growth Potential

The India auto parts manufacturing market size reached USD 73.56 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 90.58 Billion by 2033, exhibiting a growth rate (CAGR) of 2.34% during 2025-2033.

Recent News and Developments

  • February 2025: PLI-Auto scheme disbursed ₹246.21 crore (USD 29.4 million) to eligible manufacturers, with electric vehicle sales cumulative value reaching ₹14,657 crore (USD 1.91 billion) as of December 2024, demonstrating effective scheme implementation and rising EV adoption momentum.
  • February 2025: Union Budget 2025-26 announced duty exemptions on lithium-ion battery scrap and essential minerals, with 35 capital goods for electric vehicle production added to the exemption list, significantly reducing EV component manufacturing costs and supporting domestic production scaling.
  • December 2024: Tata Motors and Mahindra & Mahindra received manufacturing incentives totaling ₹246 crore under the PLI scheme, reflecting government support for EV production expansion by India's largest automakers.
  • December 2024: Carraro, a leading auto components manufacturer, was listed on BSE and NSE with an IPO comprising entirely an Offer for Sale (OFS) of 1.78 crore shares, marking significant investor confidence in India's organized auto parts sector.
  • December 2024: myTVS launched myTVS Hypermart quick commerce platform ensuring auto parts delivery within 1-2 hours, with plans for 50 dark stores by March 2025 and 250 outlets within 2-3 years, achieving 30% supply chain cost reduction through AI-driven logistics.

Latest Market Trends

Surging Vehicle Production Accelerating Component Demand

Rising vehicle production in India is directly fueling increased demand for essential automotive components and critical manufacturing inputs. In September 2024, total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 27,73,039 units, representing significant manufacturing momentum. During April-September FY25, aggregate production across all vehicle categories reached 1,56,22,388 units, demonstrating sustained industrial capacity expansion and strengthening demand for braking systems, engines, transmissions, and sophisticated component assemblies.

Automakers are aggressively expanding production capacity to capture rising demand for personal and commercial vehicles. OEM localization initiatives are strengthening domestic supply chains and reducing reliance on imports, positioning India as an increasingly self-sufficient automotive component manufacturing hub. With the Indian passenger car market projected to reach USD 54.84 billion by 2027, growing at over 9% annually, sustained demand for domestically manufactured auto parts and components will continue accelerating.

Electric Vehicle Transition Creating Advanced Component Opportunities

The rapid transition toward electric vehicles is fundamentally reshaping component demand patterns and creating substantial opportunities for manufacturers of advanced technology components. The EV ecosystem is expanding rapidly, with charging station infrastructure projected to increase from 12,146 stations in February 2024 to 400,000 stations by 2026, indicating massive investment in EV infrastructure and ecosystem development.

As of December 2024, cumulative electric vehicle sales under the Production Linked Incentive (PLI) scheme reached USD 1.91 billion (₹14,657 crore), demonstrating strong consumer acceptance and production momentum in the EV segment. Manufacturers are increasingly focusing on localizing advanced EV components including electric motors, battery management systems, controllers, and charging systems to reduce imports and enhance export competitiveness. Accuron Technologies and Hyundai CRADLE have co-invested in Xnergy, a startup specializing in contactless charging solutions for electric and autonomous vehicles, exemplifying the innovation ecosystem emerging around EV component technology.

Request Free Sample Report: https://www.imarcgroup.com/india-auto-parts-manufacturing-market/requestsample

Market Scope and Growth Factors

India's auto parts manufacturing market scope is expanding substantially as OEMs and aftermarket players increasingly recognize the strategic importance of domestically sourced, competitively-priced components in maintaining global competitiveness. The market is characterized by multiple converging growth catalysts creating favorable conditions for both established manufacturers and emerging players.

Rising Vehicle Ownership and Service Requirements: The Indian automotive landscape is experiencing rapid vehicle proliferation across urban and rural regions, directly correlating with increased demand for maintenance, repairs, and replacement components. Aging vehicle fleets require frequent servicing, creating sustained demand for brakes, filters, batteries, electrical components, and underbody assemblies. Increasing urbanization and improved accessibility are accelerating vehicle usage patterns, necessitating more frequent component replacement cycles and aftermarket services. Government regulations emphasizing vehicle safety and emissions standards are encouraging timely maintenance and component upgrades, further strengthening aftermarket demand.

OEM Capacity Expansion and Localization: Major automakers including Tata Motors, Mahindra & Mahindra, and Hyundai are significantly investing in production capacity expansion, particularly for electric vehicles. Hyundai pledged additional investments of USD 743 million (₹6,180 crore) for long-term manufacturing expansion in Tamil Nadu during the 2024 global investor meet. These capacity expansions directly translate to increased demand for localized component supplies from domestic manufacturers, creating growth opportunities across the supplier ecosystem.

Explore the Full Report: https://www.imarcgroup.com/india-auto-parts-manufacturing-market

Market Segmentation Analysis

Segmentation by Component Type:

  • Battery
  • Cooling System
  • Underbody Components
  • Engine Components
  • Automotive Filter
  • Lighting Components
  • Electrical Components
  • Others

Segmentation by Sales Channel:

  • OEM (Original Equipment Manufacturer)
  • Aftermarket

Segmentation by Vehicle Type:

  • Passenger Cars
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles
  • Others

Segmentation by Region:

  • North India
  • South India
  • East India
  • West India

Discuss Your Needs with Our Analyst – Get Customized Report Now: https://www.imarcgroup.com/request?type=report&id=29646&flag=C

Competitive Landscape

The report offers an in-depth examination of the competitive landscape. It includes thorough competitive analysis encompassing market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant with detailed profiles of all major companies.

About IMARC Group

IMARC Group is a leading market research company that offers management strategy and market research services worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses through data-driven insights and strategic analysis.

IMARC's information products encompass major market, scientific, economic, and technological developments for business leaders in pharmaceutical, industrial, and high-technology organizations. Our expertise spans comprehensive market forecasts and industry analysis across biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology, and novel processing methods.

Contact Information

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