India Electronic Power Steering Market Size

India Electric Power Steering Market Analysis

The Indian electric power steering market is expected to register a CAGR of over 10.5%, during the forecast period, 2020 - 2025.

• The Indian economy is growing, and the disposable incomes of the middle-class consumers are also increasing. This, in turn, reflects positively on the rising demand for vehicles. Over the past five years, owing to the low production costs in the country, vehicle production has gone up drastically. Due to the hike in vehicle production, the electric power steering component market is also gaining momentum. Additionally, the Indian government has modified the tax slabs on gasoline, diesel, and hybrid cars, in its 2018 budget to promote vehicle sales.
• The market is expected to be driven by the growth in budget and sport segment vehicles. However, OEMs have started focusing on implementing cost-effective and strong EPS systems in commercial vehicles (especially, heavy tractors and trucks). Hence, there has been widespread utilization of these technologies in passenger and light commercial vehicles.
• Also, the sales of the cars have been decreased gradually mainly due to the economy lockdown. This declining trend has further continued during the first quarter of 2020 due to the outbreak of Corona Virus across the country. The government had announced country lockdown, due to which both production facilities and dealerships were shutdown.
• However, initiatives were taken up, such as to continue the sales of BS-IV vehicles from May 2020. The transition from BS-IV to BS-VI has impacted the commercial vehicle sales in the country during 2019.