India Automotive Plastics Market Outlook to 2028

India Automotive Plastics Market Overview

The India Automotive Plastics Market was valued at USD 1.18 billion, driven by increasing demand for lightweight materials in vehicle manufacturing, advancements in electric vehicles (EVs), and stringent government regulations aimed at reducing carbon emissions. Key drivers include the growing adoption of electric vehicles and fuel-efficient technologies, which promote the use of automotive plastics to reduce vehicle weight.

Key players in the India Automotive Plastics Market include Reliance Industries Ltd., Tata Chemicals Ltd., Supreme Industries, BASF India Ltd., and Covestro India Pvt. Ltd. These companies have capitalized on technological advancements in polymer processing, recycling methods, and strategic collaborations to offer a wide variety of plastics such as polypropylene, polyvinyl chloride (PVC), and acrylonitrile butadiene styrene (ABS) for automotive applications.

Reliance Industries has become the first Indian company to chemically recycle plastic waste into ISCC-Plus certified circular polymers, launching Circu Repol and Circu Relene. This initiative aims to enhance plastic waste management and promote a circular economy in India, transforming various plastic types into sustainable materials.

The Northern region, with its automotive hubs in states such as Haryana and Uttarakhand, led the market in 2023, driven by the presence of major automotive OEMs and suppliers. The region's automotive plastics demand is expected to grow rapidly, driven by the rising production of passenger and commercial vehicles.

India Automotive Plastics Market Segmentation

The India Automotive Plastics Market is segmented by plastic type, application, and region.

By Plastic Type: The market is segmented into polypropylene (PP), polyurethane (PU), polyvinyl chloride (PVC), acrylonitrile butadiene styrene (ABS), and others (polyamide, polycarbonate). Polypropylene dominated the market in 2023 due to its extensive use in manufacturing interior and exterior components.

By Application: The market is segmented into interior components, exterior components, under-the-hood components, and electrical components. Interior components held the largest share in 2023, driven by the increasing use of plastics in dashboards, door panels, and seating.

By Region: The market is segmented into North, South, East, and West. The Northern region dominated the market in 2023 due to the concentration of automotive manufacturing facilities and a strong supply chain for raw materials.

India Automotive Plastics Market Competitive Landscape

Company

Establishment Year

Headquarters

Reliance Industries Ltd.

1966

Mumbai, Maharashtra

Tata Chemicals Ltd.

1939

Mumbai, Maharashtra

Supreme Industries

1942

Mumbai, Maharashtra

BASF India Ltd.

1943

Mumbai, Maharashtra

Covestro India Pvt. Ltd.

2015

Mumbai, Maharashtra

Tata Chemicals Ltd.: Tata Passenger Electric Mobility Ltd. has partnered with Hindustan Petroleum Corporation Ltd. to establish 5,000 EV charging stations across India by December 2024. This collaboration aims to enhance charging infrastructure, leveraging HPCL's extensive fuel station network and Tata's insights from over 120,000 EVs on the road.

Supreme Industries: Sato has partnered with Supreme Industries to enhance access to affordable sanitation and hygiene solutions in India. This collaboration aims to improve public health and promote sustainable practices, addressing critical sanitation challenges underserved communities face nationwide.

India Automotive Plastics Market Analysis

India Automotive Plastics Market Growth Drivers:

Demand for Lightweight Vehicles: The demand for lightweight vehicles is underscored by the fact that reducing vehicle weight by 10% can lead to a 6-8% decrease in fuel consumption and emissions. Additionally, automotive plastics can reduce vehicle weight by up to 50% compared to traditional materials, substantially enhancing fuel efficiency.

EV Growth: India's electric vehicle market is set to experience substantial growth, with about 2.8 million EVs registered as of August 2023. The number of electric vehicle models available has increased from just two in 2019 to around eight by early 2021, reflecting a growing consumer interest and market expansion.

Regulatory Push: Government regulations, such as the Bharat Stage VI emission standards, are crucial in driving the adoption of lightweight materials. In 2022, nearly 1 million electric vehicles were sold in India, indicating a substantial shift towards compliance with stringent emission norms and a growing preference for sustainable automotive solutions.

India Automotive Plastics Market Challenges:

Environmental Concerns: Plastics face significant scrutiny due to their environmental impact, particularly regarding waste disposal and recycling challenges. Around 79% of plastics produced end up in landfills or the environment, with only about 9% recycled, highlighting inefficiencies and contributing to persistent pollution in ecosystems.

Fluctuating Raw Material Prices: Fluctuating crude oil prices substantially affect the cost of polymer raw materials used in plastics production. Since 99% of plastics are derived from fossil fuels, this volatility can impact the profitability of the automotive plastics market, with broader economic and environmental implications.

India Automotive Plastics Market Government Initiatives:

FAME II Scheme: The Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme, launched in 2019, has subsidized nearly 1.2 million two-wheelers, 141,000 three-wheelers, and 16,991 four-wheelers. The government allocated Rs 10,000 crore for this initiative, with Rs 5,829 crore disbursed to date, promoting the use of lightweight automotive plastics. The scheme aims to support 5 lakh three-wheelers and 55,000 electric four-wheelers, enhancing the electric vehicle ecosystem in India.

Automotive Mission Plan 2026: The Automotive Mission Plan 2026 aims to position India as a global hub for automotive manufacturing, targeting the production of 55,000 electric four-wheelers and 5 lakh electric three-wheelers. This initiative is expected to increase the use of automotive plastics, supporting sustainable and efficient vehicle production to meet growing demand. The plan emphasizes technological advancements and aims to enhance the localization of automotive components, contributing to a greener transportation sector.

India Automotive Plastics Market Future Market Outlook

The India Automotive Plastics Market is expected to grow over the next five years, fueled by the increasing adoption of electric vehicles and stringent fuel efficiency regulations. Polypropylene and polyurethane will continue to dominate the market due to their widespread use in various automotive applications.

India Automotive Plastics Market Future Market Trends:

Rising Use of Recycled Plastics: In the coming years, the demand for recycled automotive plastics is expected to grow as manufacturers seek to meet sustainability goals and reduce the environmental impact of vehicle production. Enhanced recycling techniques will facilitate the development of high-performance recycled materials for automotive applications.

Technological Advancements: In the coming years, innovations in polymer processing and 3D printing of automotive parts will drive market growth. These advancements will enable more efficient use of plastics, allowing for lightweight and complex designs, ultimately enhancing vehicle performance and supporting the shift towards sustainable manufacturing practices.
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