Modern vehicles are increasingly defined by electronics, which power core functions such as engine control, safety systems, and in car comfort, while also enabling EVs and autonomous technologies. Electronics already make up nearly half of a vehicle’s cost and will continue to grow with the rise of software driven and connected mobility. At the same time, supply chain complexity and high import dependence highlight the importance of localisation and strengthening domestic automotive electronics manufacturing.

Exhibit: Trend in electrics and electronics automotive components market in India (In USD billion)

Source: ACMA, ICRA Research