Electronics to Make Up 50-55% of Car Cost by 2030, Signalling Major Localisation Opportunity: BCG-ACMA
- IBEF
- September 7, 2026
Electronics could account for 50-55% of a car's cost by 2030, up from around 30-35% in 2020, creating a major opportunity for Indian auto component makers to expand into electronic components, according to a BCG-ACMA report. The report said vehicles, whether powered by internal combustion engines or electricity, are becoming increasingly electronic, with features such as advanced driver assistance systems (ADAS), infotainment, sensors and connectivity becoming more common, and noted that every vehicle is becoming more electronic, marking one of the structural changes reshaping the auto component industry. However, India's electricals and electronics segment accounted for only around 12% of component supply in FY25, leaving considerable scope for domestic suppliers to build capabilities in the segment.
The report identified opportunities across sensors, electronic control units, power electronics, ADAS, connectivity and battery management systems as rising electronics content creates new component value pools, describing this as a key localisation opportunity for India, with scope for Indian suppliers to capture a larger share of the value generated by the shift towards more electronic vehicles. It noted that premiumisation, electrification, rising electronics content and stronger safety requirements are creating new component pools, while exports and localisation are widening the market available to Indian suppliers. The shift will also require component makers to build capabilities beyond traditional manufacturing, with the report stressing the need for greater investment in technology, engineering and research and development.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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