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.

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The Automotive Research Association of India (ARAI), an autonomous body under the Ministry of Heavy Industries, Government of India, has announced the readiness of its ambitious and pioneering project, the ‘ADAS Test City’.

The new facility spread across 20 acres in Takwe near Talegaon, Pune, is designed as a pseudo city to replicate the diverse road conditions in India, which will be instrumental to test and validate Advanced Driver Assistance Systems (ADAS) in a safe, secure, repeatable and controlled environment. The idea is to support the development of ADAS solutions to meet the real-world scenarios in India. The ADAS Test City is also the first-of-its-kind such dedicated facility in the country.

Furthermore, ARAI also announced that it will host ‘The ADAS Show’ in association with Aayera, at the new facility on 12 December 2025, where it expects automakers, tier 1 suppliers and technology companies to showcase their innovation and test vehicles.

Dr. Reji Mathai, Director, ARAI said, “ADAS are pivotal in enhancing road safety, and ARAI remains committed to driving the adoption of safe, smart, and sustainable mobility solutions across industry. Our upcoming ADAS Smart City Track represents a landmark initiative – India’s first dedicated proving ground designed to enable automotive and auto-tech manufacturers to rigorously test and validate their technologies in real-world conditions. We thank the Ministry of Heavy Industries for their gracious support under their Capital Goods Scheme which has enabled us to install the modular infrastructure for Verification and Validation of ADAS at the Test City. This facility will play a crucial role in advancing ADAS capabilities by empowering manufacturers to deliver best-in-class safety solutions to consumers. Moreover, this ADAS Smart City Track will not only facilitate but will boost indigenous ADAS/AV technology development from the budding start-up ecosystem. Hence, events such as The Adas Show, organised in collaboration with Aayera, are instrumental in fostering open dialogue and collaborative innovation in the realm of intelligent mobility. We look forward to insightful deliberations and a successful event on 12th December 2025.”

Syed Fareed Ahmed, Director, Aayera, added, “THE ADAS SHOW is India’s definitive platform where automotive leaders, technologists, and innovators converge to showcase and discuss the most advanced driver-assistance and safety technologies. The previous editions were inaugurated by Dr. Hanif Qureshi, IPS, Additional Secretary (Automobiles), Ministry of Heavy Industries, Government of India at ICAT, and witnessed participation from leading OEMs such as Honda, JSW MG Motors, BMW, Volvo, Mahindra & Mahindra, Tata Motors, Maruti Suzuki India, alongside global technology leaders including Bosch, ZF, Valeo, Harman, Starkenn, Rosmerta, Dassault Systemes, NXP, Uno Minda and many more. The Adas Show is a dynamic and engaging event that unites vehicle manufacturers, ADAS technology companies and testing equipment providers to present cutting-edge innovations in real-world scenarios.”

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Bengaluru-headquartered engineering R&D service company L&T Technology Services has inked a strategic partnership with Silicon Valley-based SiMa.ai, a leader in Physical AI. The partnership will focus on driving AI-driven solutions across mobility, healthcare, industrial automation and robotics.

As per the understanding, LTTS’ will combine its deep engineering expertise and domain focus with SiMa.ai’s MLSoC ONE platform and software SDK. SiMa.ai will deliver industry-leading AI hardware and software solutions by leveraging LTTS’ core engineering capabilities and human capital investments across key areas such as in-vehicle infotainment (IVI), AD/ADAS, industrial automation & robotics and healthcare.

Amit Chadha, CEO & MD, L&T Technology Services, said, “SiMa.ai cements LTTS’ position as a leader in AI-led ER&D solutions. By combining SiMa.ai’s groundbreaking AI computing technology with our expertise in design and implementation, we are empowering clients across robotics, mobility and healthcare to accelerate time-to-market, enhance operational efficiency and deliver unparalleled value. Together, we are driving the industry forward, embedding intelligence into innovative solutions that are sustainable and scalable.”

Krishna Rangasayee, Founder & CEO, SiMa.ai, said, “Our collaboration with LTTS symbolises the synergy required to scale physical AI applications globally. LTTS brings unmatched engineering capabilities and client reach, making them an ideal partner. By working together, we enable industries to harness the full potential of AI, delivering high performance and power efficiency to clients while simplifying the adoption process.”

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Rapido, a leading ride-sharing platform in India, has joined forces with the Jaipur Police Commissionerate to launch a new initiative focused on improving women's safety in the city's public transportation. This partnership, which follows a week-long awareness campaign, will see the installation of dashcams in 100 Rapido cabs to enhance ride monitoring and emergency response times.

Rapido stated that at present, 40 percent of its cab users in Jaipur are women. The initiative, titled ‘Sashakt Nari – Zimmedari Hamari’ (Empowered Women – Our Responsibility), was flagged off by Jaipur Police Commissioner Biju George Joseph and Deputy Commissioner of Police Rajarshi Raj. The campaign underscores the shared responsibility of citizens, service providers and law enforcement in ensuring women can travel safely and with confidence.

Rajarshi Raji said, "Women's safety is a collective responsibility that goes beyond the role of the police. When communities, technology partners, and law enforcement work together, we can create a safer and more supportive environment for women. Initiatives like this campaign help build confidence, enabling women to move freely for work, education and daily life."

Sudipta Sen, Senior Manager at Rapido Cabs, noted, "At Rapido, safety is not an add-on; it is the foundation of every ride. With 40% of cab users in Jaipur being women, our collaboration with Jaipur Police focuses on practical measures that can make every journey safer and more reassuring. By introducing dashcams, providing 24x7 support, and driving awareness campaigns, we are working to make mobility safer, inclusive and truly empowering for women. Our goal is to ensure that every woman in Jaipur should be able to travel with confidence and see mobility as a catalyst for her independence and participation in the city’s growth.”

The dashcams will supplement Rapido's existing safety features, which include an in-app SOS button, real-time ride tracking and a call-masking feature for female customers.

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In a major move set to redefine global connectivity for mobile assets, Luxembourg-based OrbitsIQ Global (OIQ) has completed the acquisition of Munich-based NewSpace startup, UNIO Enterprise. The deal, which combines UNIO’s pioneering connectivity software with OIQ's satellite and terrestrial network capabilities, aims to provide seamless, uninterrupted service to millions of vehicles, boats, planes and autonomous systems worldwide.

The merger is poised to create a ‘ubiquitous bridge’ between cellular and satellite networks, ensuring constant connectivity for mobile assets. The partnership is a significant step towards enabling critical technologies like autonomous driving, smart logistics and predictive maintenance, all of which rely on uninterrupted data flow.

Katrin Bacic, CEO, UNIO Enterprise, said, "Joining OIQ Global marks a turning point for UNIO. With our connectivity expertise and OIQ’s constellation vision, we will redefine how mobility assets connect. This partnership allows us to accelerate our roadmap and deliver the next generation of intelligent connectivity across terrestrial and satellite networks for industries such as automotive, agriculture, logistics and maritime sectors."

Joseph J Euteneuer, CEO, OIQ Global, said, "We are delighted to welcome UNIO Enterprise into the OIQ Global family. Their AI-powered smart-switch connectivity technology is the perfect complement to our global anywhere anytime connectivity vision. Together, we will establish a seamless, multi-band mobility connectivity capability that unlocks new frontiers in efficiency, safety and operational insight around the world."

The companies believe this acquisition positions Europe at the forefront of global telematics innovation, strengthening the continent’s leadership in a field where mobility connectivity has become as essential as fuel.

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