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Vehicle Electronics Set to Drive Major Indian Localisation Opportunity
Cars are using more electronic parts than they used to.
These parts include sensors, screens, computers and systems that help keep passengers safe.
By 2030, electronics may make up about half of a car’s cost.
In 2020, they made up about one-third.
Indian companies currently supply only a small share of vehicle electrical and electronic components.
This means they could have a large opportunity to make more of these parts locally.
The report says companies will need new skills, technology and research to compete.
This change affects both petrol- or diesel-powered cars and electric vehicles.
Electronics could rise to 50-55% of vehicle cost by 2030, from 30-35% in 2020.
The BCG-ACMA report identifies sensors, ECUs, power electronics, ADAS, connectivity and BMS as growth areas.
India’s electricals and electronics segment represented about 12% of component supply in FY25.
Indian auto component makers may expand into electronics as vehicles become more connected and technology-intensive.
The shift will require greater investment in technology, engineering and research and development capabilities.
- Who
- The Boston Consulting Group-Association of Component Manufacturers report and Indian auto component makers.
- What
- A report projects that electronics will account for 50-55% of vehicle cost by 2030, creating localisation opportunities in India.
- Where
- India’s automotive component industry.
- When
- The report was published on September 5, 2026; its projection concerns 2030 and compares with 2020 and FY25 data.
- Why
- Vehicles increasingly use ADAS, infotainment, sensors, connectivity, electronic control units, power electronics and battery-management systems.
Key facts
- Projected electronics share by 2030
- 50-55% of a car’s cost
- Electronics share in 2020
- Around 30-35% of a car’s cost
- India’s electricals and electronics supply share
- Around 12% of component supply in FY25
- Key opportunity areas
- Sensors, electronic control units, power electronics, ADAS, connectivity and battery-management systems
- Relevant vehicle types
- Both internal-combustion-engine and electric vehicles
- Required capabilities
- Technology, engineering and research and development
- Report publication date
- September 5, 2026
Quotes
BCG-ACMA report
A report by the Boston Consulting Group and the Automotive Component Manufacturers Association of India.
“Every vehicle, whether ICE or electric, is becoming more electronic.”
thehindubusinessline.com
“This presents a key localisation opportunity for India.”
thehindubusinessline.com
Sources
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