India Electric Power Steering Market Outlook to 2030

India Electric Power Steering Market Overview

• The India electric power steering (EPS) market is valued at USD 2.5 billion, driven by increasing demand for fuel-efficient vehicles, advancements in automotive technologies, and government regulations aimed at reducing emissions. As automobile manufacturers shift from hydraulic to electric systems for improved fuel efficiency, EPS adoption continues to grow, particularly in urban centers where fuel-saving technologies are highly favored. Key factors include the adoption of advanced driver assistance systems (ADAS) and the rise in electric vehicle (EV) sales, bolstering the growth and stability of the EPS market across India.

• Major demand centers for EPS in India include cities such as Delhi NCR, Mumbai, and Pune, where the automotive industry is well-established, with a strong supply chain and skilled labor force. These cities dominate due to their high concentration of automotive manufacturing facilities and R&D centers, which contribute to sustained growth in EPS production. The growing purchasing power in these regions and preference for advanced automotive systems further enhance their market dominance.
• India's commitment to reducing vehicle emissions under the Bharat Stage VI (BS-VI) norms, implemented in 2023, has spurred demand for energy-efficient EPS systems. The Ministry of Environment, Forest and Climate Change estimates a reduction of carbon emissions by 10 million tons due to BS-VI norms. EPS systems reduce load on the engine, contributing to lower emissions and aligning with these stringent environmental standards.

India Electric Power Steering Market Segmentation

• By EPS Type: The market is segmented by EPS type into Column-Type EPS, Pinion-Type EPS, Rack-Type EPS, and Direct Drive EPS. Column-Type EPS currently holds a dominant market share due to its application in small passenger vehicles, which form a significant portion of India's automotive market. The demand for lightweight, compact steering systems aligns well with the needs of these vehicles, making Column-Type EPS a preferred choice among OEMs and consumers alike.

• By Component: Segmentation by component includes Steering Column, Sensors, Electronic Control Unit (ECU), and Electric Motor. The Steering Column dominates due to its pivotal role in the EPS system and the ongoing advancements aimed at enhancing durability and responsiveness. OEMs increasingly prefer lightweight, durable steering columns that meet both performance and safety standards, making this component a critical part of the EPS system.

India Electric Power Steering Market Competitive Landscape

The India EPS market is led by prominent players such as Bosch, Nexteer Automotive, ZF Friedrichshafen, and others, who have established themselves through strategic partnerships, technology innovation, and extensive distribution networks. These companies robust market positions are attributed to their long-standing presence, manufacturing capabilities, and collaborations with major automotive OEMs.

India Electric Power Steering Market Analysis

Growth Drivers

• Adoption of Advanced Safety Features: The adoption of electric power steering (EPS) in India is supported by the integration of advanced safety features in passenger vehicles. According to the Ministry of Road Transport and Highways, India recorded over 150,000 fatalities in road accidents in 2023, which led to a push for safety improvements in vehicle design, including EPS systems that offer enhanced steering control and reduce crash risks. In 2024, the Indian government mandated the inclusion of essential safety features in new passenger vehicles, creating a conducive environment for EPS adoption.
• Increasing Demand for Fuel-Efficient Vehicles: The EPS market is witnessing growth driven by Indias rising demand for fuel-efficient vehicles. Electric power steering systems reduce engine load, which directly enhances fuel efficiency by up to 3%. Indias passenger vehicle market reported sales of around 3.8 million units in 2023, indicating robust demand for vehicles with energy-saving technologies. The Automotive Research Association of India (ARAI) affirms that EPS contributes significantly to fuel savings, supporting the government's target of reducing fuel imports by 10% by 2025.
• Government Initiatives for Electric Vehicles: Government support for electric vehicles is a major driver for EPS systems. Under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India scheme, the government allocated USD 320 million in incentives through 2024, promoting the adoption of EVs and hybrid vehicles. EPS systems align with EV requirements by reducing battery load and increasing efficiency. India's target to achieve 30% EV penetration by 2030 highlights the potential growth for EPS adoption in electric and hybrid vehicles.

Challenges

• High Cost of Components: The high cost of electric power steering (EPS) components poses a significant challenge for mass-market adoption, particularly in cost-sensitive regions. EPS systems rely on advanced technologies such as sensors, electronic control units (ECUs), and precision motors, which require specialized manufacturing processes and materials. These factors result in higher production costs compared to traditional hydraulic power steering systems. For original equipment manufacturers (OEMs), integrating EPS into vehicles, especially those aimed at budget-conscious consumers, creates additional financial pressures.
• Supply Chain Disruptions: The global dependency on semiconductors and electronic components has exposed vulnerabilities in the supply chain for EPS systems. These systems depend on microcontrollers, sensors, and other critical semiconductor components, which are sourced from a limited number of global suppliers. Any disruption in the supply chain, whether due to geopolitical tensions, natural disasters, or production bottlenecks, can severely affect the availability of these components.

India Electric Power Steering Market Future Outlook

The India Electric Power Steering market is poised for steady growth, driven by increasing automotive production, higher consumer demand for fuel efficiency, and a shift towards sustainable technologies. The introduction of advanced EPS systems for electric and hybrid vehicles will continue to drive market expansion as regulatory pressures and consumer preferences favor more eco-friendly transportation solutions. Additionally, investments in technology innovation by key players are expected to enhance the markets competitiveness and support long-term growth.

Future Market Opportunities

• Adoption of Advanced EPS Systems: Opportunities exist in the adoption of advanced EPS technologies, including steer-by-wire systems, which eliminate the mechanical connection between the steering wheel and wheels. This innovation significantly reduces vehicle weight and enhances energy efficiency, making it a key enabler for electric and autonomous vehicles. Steer-by-wire systems also allow for greater customization of driving dynamics, appealing to both manufacturers seeking differentiation and consumers prioritizing cutting-edge features.
• Expansion into Rural and Emerging Markets: With urban markets saturating, EPS manufacturers can explore opportunities in rural areas where vehicle ownership is on the rise. The increasing affordability of compact vehicles in these regions aligns with the demand for advanced steering systems, creating a fertile market for EPS adoption. Manufacturers can capitalize on government initiatives aimed at rural infrastructure development, which is expected to further boost vehicle sales in these emerging markets.