India Auto Parts Manufacturing Market Overview
Market Size in 2024: USD 73.56 Billion
Market Forecast in 2033: USD 90.58 Billion
Market Growth Rate: 2.34% (2025-2033)
According to the latest report by IMARC Group, 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.
India Auto Parts Manufacturing Industry Trends and Drivers:
As car production increases across categories and supply networks keeps connecting with local and worldwide OEMs, the India auto parts manufacturing market is undergoing strategic change. Original equipment manufacturers are taking advantage of growing demand by increasing capacity and implementing cutting-edge manufacturing techniques to satisfy changing quality requirements. Component design and manufacture are more and more including precise engineering, robotics, and additive manufacturing so that companies may maximize speed, expense, and customization. Particularly for drivetrain, engine, and suspension systems, the increasing need for lightweight materials and fuel-efficient parts is spurring developments in metallurgy and polymer research. Concurrently, the aftermarket is helping greatly volume rise with increased consumer interest on routine maintenance, component replacements, and vehicle customization. With digital commerce systems simplifying procurement, guaranteeing availability, and increasing service reach to tier-2 and tier-3 cities, distribution networks are growing offline as well as online.
With production-linked incentive (PLI) programs and “Atmanirbhar Bharat” projects promoting domestic value addition and foreign direct investment, government policies are aggressively reshaping the market environment. As businesses decrease their reliance on imports and give local sourcing top priority for vital parts including brakes, transmissions, and electronics, localization initiatives are speeding. As demand for EV-specific parts including battery housings, thermal systems, and regenerative braking systems grows, the electric mobility revolution is transforming portions manufacture. While keeping production continuity for internal combustion engine (ICE) parts, suppliers are adjusting their product lines with electric and hybrid vehicle platforms. Furthermore, sales channel diversity is improving industry resilience. While the independent aftermarket (IAM) is growing quickly via authorized service centers and B2C distribution, OEM-aligned manufacturing is being strengthened via strategic partnerships. End consumers in both the passenger and commercial vehicle sectors are demanding quicker lead times and better product reliability, therefore pushing companies to invest in lean manufacturing and predictive maintenance systems that boost throughput and lower waste.
Driven by well-developed supplier ecosystems and access to ports for worldwide trade, Western India—particularly Pune and Aurangabad—is anchoring production regionally. Backed by trained workforce, SEZs, and dedicated RandD centers, southern states like Tamil Nadu and Karnataka are leading in precise component and electronics integration. With hubs like Gurugram and Manesar, Northern India is driving demand for metal casting, stamping, and drivetrain components thanks to closeness to major OEMs. With policy support and logistical improvements, especially around Jharkhand and Odisha, eastern states are emerging as new manufacturing routes. Tier-2 clusters around Madhya Pradesh, Chhattisgarh, and Telangana are also gaining prominence for supplementary unit development and cost-effective production. Every region is contributing distinctively to the national market, so forming a cohesive yet varied supply network. This region-wise specialization is boosting output efficiency, improving export competitiveness, and helping India’s position as a worldwide auto parts manufacturing center.
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India Auto Parts Manufacturing Industry Segmentation:
The report has segmented the market into the following categories:
Component Type Insights:
- Battery
- Cooling System
- Underbody Components
- Engine Components
- Automotive Filter
- Lighting Components
- Electrical Components
- Others
Sales Channel Insights:
- OEM
- Aftermarket
Vehicle Type Insights:
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Others
Regional Insights:
- North India
- South India
- East India
- West India
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
India Auto Parts Manufacturing Market News:
- In April 2024, Tata Motors opened a 1 lakh square-foot advanced commercial vehicle spare parts warehouse located in Guwahati. This fully digitalized facility ensures the seamless supply of Tata Genuine spare parts across the Northeast region. Partnering with Delhivery, India’s leading logistics provider, Tata Motors aims to enhance service efficiency and maximize vehicle uptime for its customers.
- In September 2024, Samvardhana Motherson International, a leading Indian auto parts manufacturer, plans to raise up to $715 million through a Qualified Institutional Placement (QIP) in September 2024. The funds will support debt repayment, capital expenditure, and expansion initiatives.
Key highlights of the Report:
- Market Performance (2019-2024)
- Market Outlook (2025-2033)
- COVID-19 Impact on the Market
- Porter’s Five Forces Analysis
- Strategic Recommendations
- Historical, Current and Future Market Trends
- Market Drivers and Success Factors
- SWOT Analysis
- Structure of the Market
- Value Chain Analysis
- Comprehensive Mapping of the Competitive Landscape
Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as a part of the customization.
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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
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