Archive · 27 Oct 2025
Indian Auto Part Makers Shift Towards Advanced Systems
Imagine car parts makers in India are getting closer to the companies that make the whole cars.
They're not just making single pieces anymore; they're helping design and put together entire systems like steering or brakes.
This is because cars are becoming more complicated, especially with electric and hybrid vehicles.
Companies that make car parts are now working with car makers right from the start, sharing the work of creating new cars.
This lets the car companies focus on the newest technology, while the part makers handle the complicated systems.
This change needs the part makers to invest in better technology and software, so they can keep up with the car industry.
Indian auto component makers are evolving to become Tier 0.5 suppliers, integrating into the design and development phase.
This shift involves collaboration with automakers for complex systems like steering, chassis, and braking.
The move is driven by the auto industry's focus on EVs, hybrids, and software-defined vehicles, increasing complexity.
Tier 0.5 suppliers co-create with OEMs, taking shared responsibility for system performance and digital enablement.
Significant investments in supply-chain automation and digital integration are essential for this transition.
- Who
- Indian auto component manufacturers and automakers.
- What
- Shift to Tier 0.5 manufacturing, integrating into the design phase of vehicle systems.
- When
- Ongoing.
- Where
- India.
- Why
- To manage complex vehicle systems like EVs, hybrids, and software-defined vehicles, freeing up automakers to focus on core technologies.
Industry Trends
Industry Trends
US Tariffs
Industry Trends
US tariffs on Indian exports are affecting the sector.
Industry Trends
Indian auto component exporters are at a disadvantage compared to Asian peers.
- Focus
- Indian auto component makers shifting to Tier 0.5 manufacturing
- Tier 0.5 Role
- Suppliers involved in design and integration alongside automakers
- Driving Force
- Automakers focusing on EVs, hybrids, and software-defined vehicles
- Key Players
- Tata AutoComp, Belrise Industries, Lumax Auto Technologies, Sona Comstar, Anand Group, Minda Corp.
- Impact
- Increased complexity prompts automakers to rely on system integrators
- Investment Needed
- Significant in hardware and software capabilities