Indian Auto Industry Gears Up for Electronic Revolution

By 2030, electronics are expected to make up 50-55% of car costs, up from 30-35% in 2020. This surge creates vast opportunities for Indian auto component makers to expand into electronic segments, driven by advances in ADAS, infotainment, and connectivity systems, as per a BCG-ACMA report.

In a dramatic shift within the automotive sector, electronics are projected to comprise up to 55% of a vehicle's cost by 2030, increasing from around 30-35% reported in 2020. This transformation presents significant growth prospects for Indian auto component manufacturers, particularly in the burgeoning field of electronic components.

A recent study by BCG-ACMA underscores the escalating role of electronics in modern vehicles, whether they are powered by internal combustion engines or electricity. With the popularity of advanced driver assistance systems, infotainment technologies, sensors, and connectivity, the industry is witnessing a pivotal transformation.

While vehicles become increasingly electrified, the report identifies crucial opportunities for domestic suppliers to enhance their capabilities in areas such as sensors, ECUs, power electronics, and battery management systems. It emphasizes the potential for localization to capture greater value from the shift towards electronic vehicles, encouraging suppliers to invest in technology and R&D to remain competitive.