With the liquidity position of the auto components industry comfortable across Tier 1 suppliers particularly, the auto components industry in India is set to witness a revenue growth of five to seven percent in FY2024-25 as compared to the high of 14 percent in FY2023-24.  

The stable cashflows and earnings supporting the comfortable liquidity position of Tier 1 suppliers in particular, the auto components industry in the country, according a ICRA Limited’s report will experience an improvement in operating margins – on a year-on-year basis – of roughly 50 bps in FY2024-25. This would be supported by better operating leverage, higher content per vehicle and value additions. 

The exposure to any sharp volatility in commodity prices and foreign exchange rates a continuing factor, the ICRA report projects that the industry will incur an expenditure of INR 200-250 billion in FY2024-25 towards capacity expansion and technological developments. Capex is anticipated to hover around eight to 10 percent of the operating income over the medium term. Contribution is also expected from the PLI scheme, which has been designed to exert a localisation push for electric vehicle components and technology. 

Providing an over view of ICRA’s take on the performance of the Indian auto industry, Vinutaa S, Vice President and Sector Head – Corporate Ratings, ICRA Limited, mentioned, "Demand from domestic original equipment manufacturers (OEM) constitutes over 50 percent of sales for the Indian auto component industry and the pace of growth in the segment is expected to moderate in FY2025. Growth in replacement demand is pegged at five to seven percent, after two to three years of healthy growth, following a relatively weak Q1 in the current fiscal. Exports, which account for close to 30 percent of the industry’s revenues, are likely to be impacted by subdued growth in end-user markets. Nevertheless, ancillaries will benefit from supplies to new platforms as the global OEMs diversify their vendor base and increase outsourcing.”

The moderation in revenue growth in FY2024-25 expected to stem from a moderation in the growth pace of domestic OEMs, the Indian auto components industry is poised to face the consequences of new vehicle registrations in Europe and the US on the exports front. The markets for vehicles over there are expected to remain tepid over the next few quarters, impacted by the weak global macroeconomic environment and geopolitical tensions. 

The rising supplies to new platforms because of vendor diversification initiatives by global OEMs/Tier-I players and higher value addition are expected to drive growth and stability in the auto components industry. 

An increase in outsourcing should augur well for the Indian auto component exporters and those suppliers that are into metal casting and forgings will experience better traction as plants in European Union wind up on the back of viability challenges. 

The aging of vehicles and rising sales of used vehicles in various markets of the world is expected to ensure good demand for suppliers that are into the aftermarket and export of components for the replacement segment. 

Over the medium-to-long term, the ICRA report mentions that stable growth in the auto components space will be fueled by electric vehicle (EV) linked opportunities, premiumisation of vehicles, focus on localisation and changes in regulatory norms. 

The disruption along the Red Sea resulting in a surge in container rates by two to three times in the year-to-date 2024 calendar year, the auto components industry will need to proactively track and tread caution from a supply chain point of view the sudden increase in shipping time by about two weeks. About two third of the exports from India are the US and Europe.

“ICRA’s interaction with large auto component suppliers indicates that the industry has incurred a capex of over Rs 20,000 crore (INR 200 billion) in FY2023-24 and is estimated to spend another Rs20,000-25,000 crore (INR 20-25 billion) in FY2024-25. The incremental investments would be made towards new products, product development for committed platforms, and development of advanced technology and EV components, apart from capex for capacity enhancements and upcoming regulatory changes. R&D, though, is still at an average of one to three percent of operating income, significantly lower than the global counterparts. ICRA expects auto ancillaries’ capex to hover around eight to 10 percent of operating income over the medium term, with the PLI scheme also contributing to accelerating capex towards advanced technology and EV components,” explained Vinutaa.

Image for representation purpose only.

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Cars24 has signed a Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, to support India's startup ecosystem through initiatives focused on artificial intelligence, mobility, and road safety.

As per the agreement, Cars24 will establish structured programmes for early-stage founders, granting access to its infrastructure, mentor network, funding sources, market connections and technical resources. In turn, the DPIIT will facilitate national outreach and ecosystem integration via the Startup India platform, supporting knowledge exchange, co-branding and policy engagement.

The partnership encompasses five specific areas of operation: mentorship for early-stage founders via the Cars24 Founders' Fellowship, training through Mobility and Autotech Skilling Programmes, technical support and AI integration via Cars24 Labs, investor connections through Fuel by Cars24 and the organisation of an annual Innovation Challenge and Road Safety Hackathon alongside the DPIIT.

Vikram Chopra, Builder, Cars24, said, “Cars24 is proof that Indian founders can start with a difficult, everyday problem and build something on a national scale. We want to pass that possibility on. Through this partnership with DPIIT, we are backing the next generation of builders with more than advice. We want to give them access, capital, talent and a real platform to test ideas that can make India move smarter and safer.”

A senior DPIIT official commented, “Industry participation is central to strengthening India’s startup ecosystem. Collaborations of this kind, where an established market leader opens up its scale, mentorship and resources to early-stage founders, are exactly the bridge between ambition and execution that young startups need. We welcome Cars24’s commitment to mentoring, skilling and supporting product startups across the country.”

The non-binding MoU establishes a framework for ongoing collaboration between both entities to foster technology adoption and entrepreneurship within the Indian mobility sector.

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NXP Semiconductors has announced that the BMW Group will deploy its Trimension NCJ29D6 Ultra-Wideband (UWB) family across its vehicle fleet, beginning with selected 2026 production programmes.

The hardware component integrates fine-ranging capabilities with short-range radar functionality on a single chip. This allows vehicle manufacturers to utilise a single system for multiple applications, including hands-free vehicle entry and occupant presence detection.

The integration supports BMW’s Digital Key Plus feature, which enables vehicle owners to substitute key fobs with smartphones or smartwatches. The system manages locking and unlocking functions as the user approaches or moves away from the vehicle. Additionally, the technology includes in-cabin radar monitoring designed to identify motion patterns consistent with occupants or animals left inside a parked vehicle, sending notification alerts to users to align with European and Chinese NCAP assessment protocols.

Markus Staeblein, Senior Vice-President and General Manager, Secure Car Access at NXP Semiconductors, said, “NXP’s proven Trimension UWB platform maximises value for OEMs, using a single system to deliver multiple new and differentiating features for drivers. Digital key and presence detection are just the beginning. OEMs will be able to deliver additional UWB-based features, such as kick sensing, intrusion alert or automatic charging, as they establish the secure hardware platform in their vehicles.”

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Envalior India, an engineering materials company formed through the merger of DSM Engineering Materials and LANXESS High Performance Materials, will inaugurate the Envalior Centre of Excellence in Electric Vehicle Technology on 5 August 2026 as part of its corporate social responsibility (CSR) program.

The CoE located at Marathwada Mitra Mandal's Polytechnic in Pimpri-Chinchwad, Pune, will be implemented by the BroadArks Foundation to provide vocational training in electric vehicle systems.

It plans to train 250 individuals annually through two courses: a Level 4 Certificate in EV Service, Safety & Maintenance and a Level 5 Advanced Certificate in EV Diagnostics & Systems.

The curricula align with the National Skills Qualifications Framework and carry certification support from the Confederation of Indian Industry. The programs target students from Industrial Training Institutes and polytechnics studying mechanical, electrical, electronics, mechatronics and computer science disciplines.

Training instruction covers classroom coursework and laboratory modules focused on vehicle architecture, battery management systems, charging infrastructure, thermal management, power electronics, diagnostics and workshop safety protocols. Practical assessments and industry projects form part of the curriculum structure.

Nileshkumar Kukalyekar, Business Director – South Asia, Middle East & Africa, Envalior, said, "The launch of the Envalior Centre of Excellence reflects our commitment to supporting India's transition towards electric mobility by investing in the people who will power it. Through this Centre, we aim to provide students with industry-aligned, hands-on training that prepares them for the evolving demands of the EV sector while contributing to a stronger and future-ready workforce."

In addition to student instruction, the facility is designed to support laboratory infrastructure and instructor development programs for technical education in the region.

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South Korean auto major Hyundai Motor Group has appointed Junghyun Kwon as Executive Vice-President and Head of the Autonomous Driving Development Center.

Kwon will oversee software engineering, deep learning integration, perception systems and commercialisation pathways for the group's autonomous mobility programs, reporting directly to Minwoo Park, President and Head of the Advanced Vehicle Platform (AVP) Division.

He joins the group following technical management roles in software development and artificial intelligence across international technology firms. Kwon previously managed autonomous driving software development and deployment at NVIDIA before directing intelligent robotics development at Samsung Electronics. His technical background covers machine learning models, computer vision systems and vehicle perception frameworks.

The executive appointment forms part of a broader recruitment sequence targeting software-defined vehicle architectures and autonomous driving systems.

Earlier in July, Hyundai Motor Group appointed Dongwuk Kim as Senior Vice-President and Head of the SDV Platform Development Center, following his work on wireless communication systems for mobile devices, robotics and vehicles at Apple and Tesla. The group also added Jeremy Ma as Senior Vice-President and Head of AVP Silicon Valley, drawing on his experience in robotics and autonomous systems at Apple, Toyota Research Institute and NVIDIA.

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