Auto Electronics Horizon: BCG-ACMA Industry Outlook

Electronics could account for 50–55% of a vehicle's total cost by 2030, rising significantly from 30–35% in 2020, according to a joint report by BCG and the Automotive Component Manufacturers Association of India (ACMA). The study highlights that automobiles—regardless of whether they utilize internal combustion engines or electric powertrains—are undergoing a structural transformation toward higher electronic integration. Features such as Advanced Driver Assistance Systems (ADAS), connected infotainment systems, specialized sensors, and advanced vehicle telematics are becoming standard. However, India's electrical and electronics segment represented only about 12% of total domestic component supply in FY25, highlighting a substantial market gap and growth runway for domestic auto component manufacturers. The shift toward electronics-heavy mobility opens major localization opportunities across key sub-systems, including Electronic Control Units (ECUs), sensors, power electronics, connectivity modules, and Battery Management Systems (BMS). The report notes that consumer premiumization, fleet electrification, rising electronics intensity, and stringent national safety standards are creating new high-value component pools. Capitalizing on these emerging segments will require traditional component makers to expand beyond basic mechanical manufacturing by scaling investments in technology, software engineering, and domestic research and development to build globally competitive capabilities.