India Steering Systems Market Outlook to 2028

India Steering Systems Market Overview

• The India Steering Systems Market has experienced notable growth, reaching a valuation of USD 24 billion in 2023. This growth is fueled by the burgeoning automotive industry in India, increasing demand for passenger vehicles, and advancements in steering system technologies such as electric power steering (EPS) systems.
• The India steering systems market features several key players who dominate the industry. Prominent companies include Robert Bosch GmbH, JTEKT Corporation, Nexteer Automotive, ZF Friedrichshafen AG, and Mando Corporation. These players are recognized for their innovation, extensive distribution networks, and strategic partnerships, which help them maintain significant market shares.
• In 2023, Robert Bosch GmbH announced USD 6.5 million investment to expand its manufacturing plant in Tamil Nadu. This expansion aims to boost production capacity for advanced steering systems, including EPS systems, to meet the rising demand in the Indian market, highlighting Bosch's commitment to enhancing its regional presence and supporting the local automotive industry.
• Mumbai, Pune, Chennai, and Bangalore dominate the Indian Steering Systems Market. These cities are major automotive manufacturing hubs with a strong presence of OEMs and component manufacturers. The established infrastructure, availability of skilled labor, and proximity to ports for export purposes contribute to their dominance in the market.

India Steering Systems Market Segmentation

• By Product Type: India's steering systems market is segmented by product type into hydraulic power steering (HPS), electric power steering (EPS), and electro-hydraulic power steering (EHPS). In 2023, EPS held a dominant share in the market The dominance of EPS is attributed to its advantages over traditional hydraulic systems, including better fuel efficiency, lower emissions, and enhanced safety features.

• By Vehicle Type: India's steering systems market is segmented by vehicle type into passenger vehicles, commercial vehicles, and electric vehicles. In 2023, Passenger vehicles held the largest market share. The high volume of passenger vehicle production and sales, driven by urbanization and rising disposable incomes, significantly contributes to this segment's dominance.

• By Region: India's steering systems market is segmented by region into North, South, East, and West. In 2023, the South region dominates the market share. The presence of major automotive manufacturing plants in Tamil Nadu, Karnataka, and Andhra Pradesh, coupled with the region's robust industrial infrastructure, contributes to its leadership position.

India Steering Systems Market Competitive Landscape

• Rane NSK Steering Systems Pvt Ltd:In 2024, Rane Holdings Ltd will acquire the remaining 51% stake in Rane NSK Steering Systems Pvt Ltd from NSK Ltd for ₹45 crore. This deal will make Rane NSK a wholly owned subsidiary and will lead to its renaming as Rane Steering Systems Pvt Ltd, pending regulatory approvals. The acquisition is expected to be finalized by the end of September.
• JTEKT India Ltd: In 2023, JTEKT India announced enhancements in its production capacity and investments in new technologies, particularly in the development of advanced steering systems. This aligns with the growing demand for fuel-efficient vehicles and the integration of advanced driver assistance systems (ADAS) in the automotive sector.

India Steering Systems Industry Analysis

India Steering Systems Market Growth Drivers

• Increase in Electric Vehicle Adoption: The adoption of electric vehicles (EVs) in India is rapidly increasing, fueled by government initiatives and environmental awareness. In 2023, EV sales surpassed 1.2 million units, signaling a major shift toward sustainable transportation. This growth highlights the need for advanced steering systems, especially electric power steering (EPS), which improves vehicle efficiency and performance.
• Rising Automotive Production: India's automotive sector is thriving, with production reaching 26 million units in 2023. Domestic and export demand fuels this growth, prompting manufacturers to increase output. Consequently, the need for advanced steering systems that prioritize safety and performance is escalating.
• Fuel Efficiency Demands: The demand for fuel-efficient vehicles grows, so does the need for advanced steering systems like EPS, which not only contribute to fuel savings but also support features essential for modern driving. For example, lane-keeping assistance uses the EPS to automatically adjust the steering to keep the vehicle centered in the lane, improving safety and reducing driver fatigue.

India Steering Systems Market Challenges

• High Cost of Advanced Steering Systems: The production and implementation of systems like EPS and steer-by-wire involve substantial investment in R&D and manufacturing processes. This cost factor can limit the adoption of these advanced systems, particularly in the price-sensitive Indian market.
• Varied Climatic Conditions: India's diverse and often challenging environmental conditions, including extreme heat, heavy monsoon rains, and dusty conditions, can be a significant challenge for EPS systems. For instance, EPS is virtually inert and does not absorb moisture, making it durable and resistant to decay. The water absorption of EPS is low, with equilibrium values of 8-9% volume found in EPS fills below the ground water table after 9-12 years of service.

India Steering Systems Market Government Initiative

• Automotive Mission Plan 2026: The Indian government's Automotive Mission Plan 2026 aims to establish India as a leading global automotive manufacturing hub. This initiative targets the creation of an additional 65 million jobs in the sector. Furthermore, the government is developing the Automotive Mission Plan 2047, which sets ambitious export goals of 30% by 2030 and 50% by 2047.
• Faster Adoption and Manufacturing of Electric Vehicles (FAME) II: The FAME II scheme was launched in April 2019 with an initial budget outlay of Rs 10,000 crore, which was later increased to Rs 11,500 crore in 2024. The scheme aims to support the adoption of 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 electric four-wheeler passenger cars, and 7,000 electric buses.

India Steering Systems Market Future Outlook

By 2028, the India Steering Systems Market will be developing in varied parameters, driven by technological advancements, increased adoption of electric vehicles, and the integration of advanced driver-assistance systems (ADAS).

Future Market Trends

• Integration of ADAS in Vehicles: By 2028 the integration of Advanced Driver Assistance Systems (ADAS) in vehicles will be a notable trend in the Indian steering systems market. The penetration of ADAS features will increase modestly, with projections suggesting that the market share of ADAS-equipped vehicles could exceed in the passenger vehicle segment.
• Shift Towards Electric Power Steering (EPS): By 2028, there will be a significant shift from hydraulic to electric power steering systems in India. EPS accounts for more than half of the total steering systems market due to its benefits in terms of energy efficiency and vehicle performance. This shift will be supported by the growing adoption of electric and hybrid vehicles, which predominantly use EPS.