India is expected to become the 3rd largest manufacturer of automobiles in the world after US and China by 2020. However, automotive electronics industry in India is currently at a nascent stage and is lagging behind its foreign counterparts in terms of capacity and R&D capability. Product conceptualisation and designing of electronic components is typically undertaken by OEMs while the critical child parts are mostly imported.

The Automotive components sector in India is presently estimated at $ 38.5 bn. Majority of global and local OEMs in India are following a localisation strategy across a wide range of auto components for becoming cost competitive. However, 65-70% of Auto electronics requirement of OEMs in India is still met through import from countries like China and Taiwan.

Emerging technologies like satellite navigation systems, remote security systems, ADAS, traffic control systems, infotainment etc are some of the emerging electronic accessories in the Indian automotive electronics space.

The Government of India is also creating a conducive environment for promoting electronics manufacturing in the country through its “Make in India” campaign. 100% FDI is allowed under the automatic route in the Electronics Systems Design & Manufacturing (ESDM) sector.