India Automobile Sector Accessories
Overview
India is the world’s third largest car market, behind only China and the United States. During the Indian financial year 2023 (April–March), the industry produced a total of 26 million automobiles, including passenger vehicles, commercial vehicles, three wheelers, two wheelers, and quadricycles. The auto sector contributes 49% of India’s manufacturing gross domestic product (GDP) and 7% of national GDP.
The auto accessories sector in India is a vibrant and evolving market catering to a diverse range of products designed to enhance and customize passenger cars. This dynamic industry spans interior and exterior customization, safety enhancements, and technological upgrades.
Market Dynamics and Segmentation
India’s auto accessories industry encompasses a broad spectrum of products, including interior customization kits, exterior enhancements, safety features, and advanced technological additions. As the automotive landscape continues to evolve, there is a rising demand for innovative and aesthetically pleasing accessories that align with changing consumer preferences. The automotive aftermarket segment in India is expected to reach $32 billion by 2026.
Factors Driving Growth
Several factors contribute to the growth outlook for the passenger car accessories market in India:
- Safety and Performance: The trend for upgrading stock headlamps and fog lamps to aftermarket products is driven by a desire for improved illumination on the road, thereby enhancing overall driving safety and performance.
- Infotainment System Sales: Increasing sales of automotive infotainment systems is propelled by growing smartphone penetration and high-speed internet adoption.
- Shifting Consumer Preferences: Changing consumer preferences (particularly, a new generation of vehicle buyers) favor premium cars and products focusing on advanced technology aided products.
- Vehicle and Owner safety awareness: Rising consumer demand for vehicle safety is driving an aftermarket opportunity for advanced safety technology like dash cams, 360° surround cameras and TPMS.
- Aesthetic Appeal: A growing preference for enhancing the aesthetic appeal and personalization of automobiles is leading to increased sales of customized accessories.
- Emergence of New Vehicle Technologies: Expanding application of the Internet of Things (IoT), alongside increased sales of electric vehicles and those equipped with Advanced Driver-Assistance Systems (ADAS Levels 1 & 2), is fueling a substantial demand for smart and connected car accessories.
Opportunities for U.S. Companies
U.S. companies stand to benefit significantly from the burgeoning Indian auto accessories sector by:
- Exporting innovative and high-quality interior and exterior customization kits.
- Supplying safety features and technologies aligned with India’s evolving automotive landscape.
- Providing advanced technological solutions, including IoT-based accessories.
- Collaborating with Indian retailers on aesthetic enhancements to meet the growing demand for customized car accessories.
The experienced U.S. Commercial Service team in India can help your market entry or expansion in the Indian subcontinent. For further information regarding opportunities in this sector, please reach out to your local U.S. office or contact the U.S. Commercial Service in India.