Global auto parts makers are turning to India for growth, as domestic carmakers ramp up electric vehicles and safety features, even as demand softens in the US and Europe.
Companies such as Autoliv, Visteon Corporation and Mobileye Global Inc have flagged India as a key growth driver in recent earnings, citing rising demand from local carmakers for advanced safety systems and driver-assistance technologies.
The shift is being powered by domestic manufacturers Tata Motors and Mahindra & Mahindra, which are expanding electric vehicle line-ups while adding features across internal combustion (ICE) models, increasing electronics and safety content per vehicle.
“In India, we grew sales organically by 38%, reflecting mainly the trend of increased safety content in vehicles in India, as well as the continued high level of LVP (light vehicle production) growth,” Mikael Bratt, president & CEO at Sweden-based Autoliv, which makes safety systems like safety electronics, said after the release of its March quarter earnings on 17 April.
Among the main growth drivers in its fastest-growing Asia region, excluding China, are Tata Motors and Suzuki.
India’s EV adoption is amplifying that trend. In FY26, electric car sales rose 84% year-on-year to nearly 200,000 units, according to the Federation of Automobile Dealers Associations.
“The opportunity is not only because EV volumes are rising, but because the vehicle architecture itself is changing,” Harshvardhan Sharma, group head of Automotive Technology & Innovation, at Nomura Research Institute Consulting & Solutions India, said.
“As EV penetration moves up, OEMs will need higher electronic and software content per vehicle, from battery management systems, power electronics and thermal management to ADAS (advanced driver assistance systems), restraint systems, cockpit electronics and embedded software,” he added.
Emails sent to Maruti Suzuki, Tata Motors PV, Mahindra and Mahindra and Hyundai Motor India for their comments remained unanswered till press time.
Mobileye, an Israel-based manufacturer of hardware and software solutions to aid development of ADAS, said “We continue to see significant potential for growth in the India market for both ADAS and AV (autonomous vehicle).”
The company announced SuperVision and Surround ADAS design wins with Mahindra. In its earnings report dated 23 April. the company said it is “encouraged that Mahindra believes that advanced mobility products based on Mobileye solutions can serve as competitive differentiators in the mid-trim and premium vehicle segments.”
US-based Visteo said the company continues to win new projects in the Indian market as carmakers continue to upgrade their vehicle experience for customers.
The cumulative market cap of the three global component makers was close to $20 billion.
Electric vehicles are already contributing meaningfully to growth in India, even as US and Europe-based carmakers such as Ford Motor Company, Stellantis, General Motors and Volkswagen Group take write-offs on their investments in the segment amid lower than their expected growth.
The country’s overall passenger vehicle market grew by 540,000 units in the financial year 2026 to reach 4.7 million units. Of this incremental growth of 540,000 cars, about one-fifth came from EVs, which helped homegrown carmakers Tata Motors PV and Mahindra and Mahindra build a lead over Hyundai Motor India.
Global carmakers are taking note. Renault highlighted India as a bright spot to push production of both its internal combustion engine vehicles and electric vehicles.
“In India, we have a great ambition: make it one of Renault brand’s top three markets worldwide by 2030 and attain a market share of 5%,” Renault global chief executive officer (CEO) Francois Provost said last month during a visit to India. The French carmaker is targeting €2 billion worth annual exports from India by 2030, he added.
According to data from the International Organisation of Motor Vehicle Manufacturers (OICA), automobile production in Asia-Oceania grew by 7.6% in 2025, compared to 2024, while Europe and the Americas saw declines of 0.8% and 2.1%, respectively.
Rising safety standards could further accelerate demand for components. India’s Bharat NCAP crash-testing regime is pushing automakers to add airbags, sensors and structural reinforcements, increasing content opportunities for suppliers such as Autoliv.
