India Automotive Filters Market Outlook to 2028

India Automotive Filters Market Overview

In 2023, the India Automotive Filters Market reached a valuation of USD 1 billion, driven by growing vehicle production, increasing adoption of electric vehicles, and stringent emission regulations. The market growth is supported by the need for fuel efficiency and improved engine performance, as well as the implementation of BS-VI emission norms.

Key players dominating the market include MANN+HUMMEL, Bosch Limited, Mahle Group, Denso Corporation, and Sogefi SpA. These companies have established themselves as market leaders through extensive product portfolios, strategic partnerships, and innovations in filtration technologies. Their strong presence in both the OEM and aftermarket segments ensures their market dominance.

Chennai, Pune, and Gurgaon are the dominant cities in the India Automotive Filters Market, thanks to their established automotive manufacturing hubs. Chennai, often referred to as the Detroit of India, has a high concentration of automobile production units, which drives demand for automotive filters. Pune and Gurgaon also contribute significantly due to their thriving automobile industries and the growing presence of both domestic and international car manufacturers.

India Automotive Filters Market Segmentation

The India Automotive Filters Market can be segmented by product, vehicle type, and region.

By Product Type: The market is segmented by product type into air filters, oil filters, fuel filters, and cabin filters. In 2023, air filters dominated the market share, driven by the need for enhanced engine performance and fuel efficiency. Air filters are crucial for maintaining optimal air intake and preventing dust and debris from entering the engine, making them a preferred choice among both OEMs and aftermarket suppliers.

By Vehicle Type: The market is segmented by vehicle type into passenger cars, commercial vehicles, and two-wheelers. Passenger cars accounted for the largest market share in 2023 due to the rising demand for fuel-efficient and low-emission vehicles. The two-wheeler segment also holds a significant share, especially in Indias urban and semi-urban regions, where motorcycles and scooters are the primary modes of transportation.

By Region: Regionally, the India Automotive Filters Market is segmented into North, South, East, and West. The Western region, particularly Maharashtra and Gujarat, dominated the market in 2023 due to the presence of major automotive manufacturing hubs. The South region, led by Chennai, also holds a significant market share due to its concentration of OEMs and auto component suppliers.

India Automotive Filters Market Competitive Landscape Overview

Company Name

Establishment Year

Headquarters

MANN+HUMMEL

1941

Ludwigsburg, Germany

Bosch Limited

1951

Bengaluru, India

Mahle Group

1920

Stuttgart, Germany

Denso Corporation

1949

Kariya, Japan

Sogefi SpA

1980

Mantua, Italy

Denso Corporation: On June 4, 2023, Denso acquired a 72.1% stake in Pennsylvania-based EASE Simulation, a company specializing in vehicle diagnostics and telematics. This acquisition strengthens Denso's R&D capabilities in these areas, supporting the industry's move towards service-oriented solutions in the aftermarket. The partnership will accelerate cloud-based diagnostics and telematics services for the U.S. light-vehicle market.

Mahle Group: On May 2, 2024, Mahle completed the sale of its OEM thermostat division to ADMETOS, an industrial and investment holding firm. The transaction includes approximately 600 employees across six countries, marking Mahle's strategic shift while ADMETOS takes over the thermostat segment's operations globally.

India Automotive Filters Market Industry Analysis

Growth Drivers

Stricter Emission Regulations in India: India's introduction of Bharat Stage VI (BS-VI) norms in 2020 has significantly impacted the demand for automotive filters. These regulations require advanced filtration systems in vehicles to reduce the emission of pollutants, including nitrogen oxides and particulate matter. By 2024, the enforcement of these emission standards has accelerated the adoption of new filter technologies, particularly in diesel vehicles, which are more polluting.

Surge in Electric Vehicle Adoption: The FAME II Scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) launched by the Indian government in 2019 and extended into 2024 has resulted in a surge in electric vehicle production and sales. This shift has directly influenced the demand for advanced filtration systems, particularly in powertrain filters required for electric and hybrid vehicles. The scheme is expected to lead to the manufacturing of over 1.5 million electric vehicles by 2024, significantly boosting the market for filters in the EV segment.

Increase in Vehicle Ownership and Production: India saw an estimated production of 4.8 million passenger vehicles in 2024, according to industry data, driven by the expansion of both domestic and international automakers. This growing vehicle fleet directly increases the demand for automotive filters, as each vehicle requires multiple filters for engine protection, fuel efficiency, and air quality enhancement. Additionally, the growing middle class in urban areas is accelerating the demand for cars, further driving the growth of the filter market.

India Automotive Filters Market Challenges

High Cost of Advanced Filters: While automotive filters are essential for meeting regulatory norms, the adoption of advanced filtration systems remains a challenge due to the higher costs associated with their development and installation. For instance, an advanced HEPA cabin air filter can cost nearly three times more than a standard filter, making it less attractive to cost-conscious consumers, particularly in the two-wheeler and budget vehicle segments. This cost barrier limits the widespread adoption of newer filtration technologies, especially in the mass-market segment.

Counterfeit Products in the Market: The Indian automotive market is facing significant challenges due to the proliferation of counterfeit filters, which can lead to engine damage and higher emissions. According to a report by SIAM (Society of Indian Automobile Manufacturers), counterfeit automotive components, including filters, account for nearly 20% of the total aftermarket. These products are often sold at much lower prices than their authentic counterparts, hampering the growth of genuine filter manufacturers and potentially causing long-term issues for consumers.

India Automotive Filters Market Government Initiatives

Production Linked Incentive (PLI) Scheme: Introduced in 2021, the PLI scheme has provided financial incentives to domestic manufacturers of automotive components, including filters. By 2024, this initiative has resulted in increased local production of filters, reducing dependency on imports and fostering innovation in filter technologies.

FAME India II Scheme: The FAME II scheme, with a budget outlay of INR 10,000 crores, focuses on promoting the adoption of electric and hybrid vehicles, which includes incentives for the development of filtration systems tailored for electric vehicle powertrains. By 2024, the scheme has resulted in significant investments in the electric vehicle segment, leading to a growing need for advanced filters in electric powertrains.

India Automotive Filters Market Future Market Outlook

The India Automotive Filters Market is expected to witness substantial growth by 2028, driven by technological advancements, increased adoption of electric vehicles, and stricter emission regulations.

Future Market Trends

Increased Adoption of Electric Vehicle- Specific Filters: By 2028, the market for electric vehicle-specific filters is expected to grow rapidly, driven by the increasing number of EVs on Indian roads. The FAME II scheme will continue to promote EV adoption, leading to a higher demand for specialized filters that support electric powertrains and battery systems.

Smart Filters with IoT Integration: The future of automotive filters lies in smart, connected filtration systems. By 2028, IoT-enabled filters that monitor performance in real-time will become more common in premium vehicles. These filters will alert vehicle owners when maintenance or replacement is required, ensuring better engine efficiency and longevity.
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