Electronics will make up 50% to 55% of a car’s total manufacturing cost by 2030, growing significantly from 30% to 35% in 2020, creating a growth opportunity for Indian automotive component manufacturers in high-value electronic systems, according to a recent report by the Boston Consulting Group (BCG) and the Automotive Component Manufacturers Association of India (ACMA).
As per the report, increasing adoption of ADAS, infotainment, connected vehicle technologies, sensors, and ECUs in both ICE and EV vehicles are driving higher content of electronics.
However, India’s electrical and electronics segment was expected to be around 12% of domestic component supply in FY2025, highlighting significant scope for localization. Indian suppliers could capture a share of this emerging value pool, while also developing new capabilities in automotive electronics and other associated technologies.
Some technologies such as sensors, Electronic Control Units (ECUs), power electronics, connectivity systems, and Battery Management Systems (BMS) are gaining more consumer attraction as cars evolve into software-defined and highly connected products.
To capture this localisation opportunity, Indian component manufacturers need to move beyond traditional mechanical and manufacturing capabilities. They need to invest more in engineering, research and development, electronics design, software, testing, and technology development to compete in advanced technology that can be easily adopted by consumer mature automotive supply chains.
