India’s Automotive Semiconductor Market 2025–2030: EV Boom, Policy Push, and Domestic Manufacturing Shape a High-Growth Future
The latest report, “Automotive Semiconductor Market in India (2025–2030),” released by ResearchAndMarkets.com, provides an in-depth analysis of one of the fastest-growing technology-driven industries in India. Valued at INR 199.95 billion in 2024, the Indian automotive semiconductor market is expected to more than double and reach INR 434.90 billion by 2030, growing at a robust compound annual growth rate (CAGR) of ~15.42% during the forecast period.
The report highlights how the rise of electric vehicles (EVs), increased vehicle electrification, and the integration of smart mobility solutions are transforming demand for semiconductors in India. Alongside technology adoption, government incentives and domestic manufacturing initiatives are creating a strong foundation for growth, reducing import dependency, and positioning India as a competitive player in the global semiconductor value chain.
Market Insights: A Sector on the Rise
The automotive semiconductor industry in India has traditionally been driven by import reliance from countries such as Taiwan, South Korea, and China. However, a combination of domestic policy reforms and rapid technological adoption is shifting the dynamics.
- Smart Mobility Integration: Vehicles are no longer just mechanical machines; they are becoming data-driven platforms. With the adoption of IoT (Internet of Things), AI-enabled infotainment systems, and V2X (Vehicle-to-Everything) communication, demand for specialized semiconductors has surged.
- EV Penetration: India’s ambitious EV adoption targets under the FAME II scheme are fueling demand for power semiconductors, such as IGBTs (Insulated-Gate Bipolar Transistors), MOSFETs, and SiC (Silicon Carbide) chips, which enable high energy efficiency and longer battery life.
- Safety and Regulations: The introduction of Bharat NCAP (New Car Assessment Program) is driving automakers to integrate advanced driver assistance systems (ADAS), such as adaptive cruise control, collision warning, and automatic emergency braking—all of which are heavily reliant on semiconductor technologies, including LiDAR sensors, radar chips, and microcontrollers.
These factors are making semiconductors a cornerstone of modern vehicle architecture, transforming how cars are designed, built, and experienced in India.
Policy Push: Building Self-Reliance in Semiconductors
While global companies like NXP, Infineon, and Qualcomm dominate the Indian semiconductor supply chain, the Indian government has rolled out major initiatives to encourage local manufacturing:
- Production Linked Incentive (PLI) Scheme: Designed to make India self-sufficient in semiconductor production by offering incentives to domestic and foreign manufacturers establishing operations in India.
- Semicon India Program: A comprehensive policy framework aimed at creating an end-to-end semiconductor ecosystem that supports design, fabrication, packaging, and testing.
- Net-Zero Commitment: As India commits to achieving net-zero emissions by 2070, semiconductor companies are developing ultra-low-power chips to ensure energy efficiency in vehicles, directly supporting sustainability goals.
By encouraging investment in fabrication plants, R&D, and testing facilities, India is paving the way to reduce its reliance on imports and establish itself as a global hub for semiconductor innovation.
Key Market Trends
The report highlights several emerging trends shaping India’s automotive semiconductor market between 2025 and 2030:
- Acceleration of EV Adoption
- EVs are expected to form a large part of the semiconductor demand. Each electric car requires 2–3 times more semiconductors compared to internal combustion engine (ICE) vehicles.
- India’s EV sector is projected to grow significantly, particularly in the two-wheeler and three-wheeler segments, which are adopting electrification at scale.
- Rise of ADAS and Smart Safety Systems
- With increasing safety regulations, ADAS technologies are moving from premium models to mass-market vehicles.
- Features like blind-spot detection, driver monitoring systems, and lane-keeping assistance require semiconductors for sensors, imaging chips, and processing units.
- Connected Vehicles and IoT Integration
- Modern cars are increasingly connected, enabling real-time data transfer, over-the-air (OTA) updates, and predictive diagnostics.
- Semiconductors are at the core of these functions, powering telematics control units, IoT gateways, and AI processors.
- High-Efficiency Power Semiconductors
- With EV expansion, demand for high-voltage power devices is soaring. Advanced semiconductor materials such as SiC and GaN (Gallium Nitride) are emerging as game-changers for battery efficiency, charging speed, and thermal management.
- Focus on Sustainability
- As automakers and semiconductor manufacturers prioritize low-power consumption, innovations are leading toward energy-efficient chipsets that align with India’s broader climate goals.
Market Challenges
Despite the strong growth trajectory, the market faces several challenges:
- High Dependence on Imports: India still relies heavily on semiconductor imports, making it vulnerable to global supply chain disruptions.
- Capital-Intensive Manufacturing: Setting up semiconductor fabs requires billions in investment, long gestation periods, and advanced technological know-how.
- Skilled Workforce Shortage: The industry faces a shortage of semiconductor engineers, designers, and technicians. Addressing this requires major investments in STEM education and skill development programs.
- Global Competition: While India is building its domestic ecosystem, it faces stiff competition from established hubs like Taiwan, South Korea, and the United States.
Competitive Landscape
The Indian automotive semiconductor market features a blend of domestic innovators and global leaders. Key players covered in the report include:
- ASM Technologies Limited
- MosChip Technologies Limited
- RIR Power Electronics Limited
- Tata Elxsi Limited
- Chiplogic Technologies
- EInfochips Inc.
- Infineon Technologies India Pvt. Ltd.
- Micron Technology
- NXP Semiconductors
- Qualcomm India Private Limited
These companies are pursuing strategic partnerships, acquisitions, and R&D investments to capture the rapidly expanding market. Global leaders are also increasingly collaborating with Indian firms and institutions to localize supply chains and expand their presence.
Future Outlook: 2025–2030
The Indian automotive semiconductor market is entering a transformative phase. By 2030, semiconductors will not only power EVs and ADAS systems but also form the backbone of autonomous mobility, shared transportation models, and AI-driven fleet management.
Key growth drivers expected over the next five years include:
- Accelerated EV penetration across passenger and commercial vehicles.
- Mandatory safety features under Bharat NCAP, expanding ADAS adoption.
- Rising consumer expectations for connected, intelligent vehicles.
- Domestic manufacturing expansion, reducing import dependency.
- Sustainability-led innovation, driving demand for ultra-low-power chips.
With a combination of policy backing, industrial innovation, and global collaboration, India is poised to emerge as a significant player in the global automotive semiconductor market.
