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India Auto Parts Market is a thriving sector, driven by the country’s booming automotive industry, a growing population of vehicles, and a steady increase in vehicle production. The Indian auto parts market is poised for significant growth in 2025, driven by rising vehicle production, robust domestic demand, and increasing exports.

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.

As the automotive sector embraces electric vehicles (EVs) and advanced technologies, the demand for innovative and high-quality components is surging. Government initiatives like the Production-Linked Incentive (PLI) scheme and favorable policies for EV manufacturing are attracting investments from global and domestic players.

Additionally, the growing emphasis on sustainability and localization is reshaping the supply chain. With India emerging as a global hub for manufacturing, the auto parts market is expected to witness a steady rise in opportunities and revenue. The India auto parts market is witnessing a wave of innovations, driven by advancements in technology, electrification, and government initiatives like Make in India.

Manufacturers are adopting smart manufacturing techniques, including automation and IoT integration, to enhance productivity and quality.

The rise of electric vehicles (EVs) has spurred the development of components like lightweight materials, advanced batteries, and regenerative braking systems. Startups are introducing AI-driven solutions for predictive maintenance and 3D printing for rapid prototyping. Additionally, the focus on sustainability is encouraging the use of recycled materials and eco-friendly production processes, propelling the market toward a tech-driven, greener future.

This market comprises original equipment manufacturers (OEMs) that supply parts to automakers, as well as the aftermarket sector that provides replacement parts, repair services, and upgrades. India’s auto parts industry, which includes everything from engines and transmissions to tires, batteries, and electronics, has attracted significant investments from both domestic and international players. With the rise in demand for vehicles and the government’s push for self-reliance, the market for auto parts in India is expected to grow steadily in the coming years.

One of the primary factors driving the Indian auto parts market is the rapid expansion of the automotive industry. India is among the largest automobile markets in the world, with a substantial consumer base across various segments including passenger vehicles, commercial vehicles, and two-wheelers. This growing demand for vehicles has led to an increase in the production of automotive components to support the industry’s expansion. The Indian government’s “Make in India” initiative, aimed at promoting domestic manufacturing, has further boosted the sector. By encouraging local production of auto parts, the government aims to reduce import dependence and increase India’s role as a global manufacturing hub for the automotive industry.

The aftermarket segment within the auto parts market plays a vital role, catering to the needs of vehicle owners for replacement parts, repairs, and maintenance. With a large population of aging vehicles on Indian roads, the demand for replacement parts has grown significantly.

Vehicle maintenance, repairs, and periodic upgrades create a steady demand for spare parts, allowing the aftermarket segment to thrive. Independent workshops and service centers play a key role in this ecosystem, providing affordable repair services to vehicle owners who may not visit authorized service centers. This has created opportunities for smaller businesses and independent parts suppliers who offer competitive prices for high-quality replacement parts.

In addition to traditional parts, the demand for automotive electronics has surged in India’s auto parts market. As consumers prioritize safety, comfort, and connectivity features in vehicles, manufacturers have been incorporating advanced electronics into vehicle designs. This includes systems like anti-lock braking systems (ABS), airbags, infotainment systems, and telematics. The push for connected cars has further amplified the need for electronic components, as consumers increasingly expect smart features and seamless connectivity within their vehicles.

The rapid adoption of advanced driver assistance systems (ADAS) and other digital solutions has boosted the growth of the electronics sector within the auto parts market, especially in higher-end vehicles.