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India Automotive Plastics Market

India Market Study on Automotive Plastics: North Indian Region to Account for Leading Market Share

India Automotive Plastics Industry Segmentation Based on product type(Polypropylene, Polyurethane, Acrylonitrile Butadiene Styrene, Polyvinyl Chloride, Polyethylene, Polystyrene, Polycarbonate, Polyamide, PMMA, Plastic Composites), polypropylene is expected to dominate the sales of automotive plastics across India.

India Automotive Plastics Market Outlook (2022 to 2032)

According to the most recent market estimates by Persistence Market Research, the India automotive plastics market is valued at US$ 1.78 billion in 2022 and is anticipated to expand rapidly at a CAGR of 9.7% to reach US$ 4.51 billion by the end of 2032.

The necessity to minimize weight and enhance the performance of automobiles has always led to the progressive substitution of metal parts with plastic ones. Although plastic is porous compared to conventional metals such as steel, it has an excellent strength-to-weight ratio.

Initially, interior finishings were the principal usage of vehicle plastics. However, they are now also being utilized for external automotive components such as doors, fenders, bonnets, and even bumpers that were once designated for sheet metal and steel.

India Automotive Plastics Market Size (2021A)

US$ 1.64 Billion

Estimated Market Value (2022E)

US$ 1.78 Billion

Projected Market Value (2032F)

US$ 4.51 Billion

Value CAGR (2022 to 2032)

9.7%

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Market Outlook for Automotive Plastics in India (2017 to 2021) Compared to Forecasts (2022 to 2032)

Automotive plastic sales in India increased at a CAGR of 8.5% between 2017 and 2021. The growth of the automotive and plastic industries witnessed a sudden drop owing to pandemic restrictions globally, which led to a decrease in the sales of vehicles in the Indian as well as the global market.

The automotive plastics market is primarily driven by the application of plastics in various vehicles and automotive components. With consistent growth in automotive sales since 2021, the demand for automotive plastic components is anticipated to witness a heavy upsurge in growth over the forecasted period.

With consistent growth in research and development investments in the Indian automotive market, the replacement rate of metal parts with plastic ones is anticipated to gain more traction over the coming years. Such growth in demand is expected to propel the sales of automotive plastic parts in India at a remarkable CAGR of 9.7% over the next ten years.

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Why is Consumption of Automotive Plastics Rising Rapidly in India?

“Rising Demand for Electric & Hybrid Vehicles in the Country”

Electric and hybrid vehicles are the new trend in the market; they are one of the main factors for propelling the growth of the automotive market. Various applications of advanced plastics and vehicle polymers are anticipated to be a crucial part of the future of mobility. Revolution in the automotive industry and the replacement of conventional transportation with smart vehicles, along with safer performance and full efficiency, are key trends being witnessed in this space.

Automotive plastics not only reduce vehicle weight but also add value by replacing conventional batteries and parts with advanced lightweight materials. Hybridization is in the limelight at the moment and comprises the combination of gas and electric propulsion systems. It makes the vehicle lightweight, saves space, and increases the battery’s operating duration. These factors are projected to elevate the demand for plastics and plastic composites in the Indian market.

“Need for Reduction in Vehicle Weight to Improve Mileage”

The market is expected to grow owing to the increasing requirement for advanced safety measures such as airbags, lane departure warning systems, and other ADAS systems. Apart from the looks and other properties of plastics, safety systems are equally important. Plastic composite structures help in making the vehicle lightweight and preserving its safety features. They are shock-, heat-, and pressure-resistant and can help in saving human lives. They provide a major source of intrusion resistance during a collision.

Tear-resistant plastic layers are applied to vehicles to prevent damage. Clear and transparent polycarbonate plastic films are used for resistance to UV light and for reducing the weight of the vehicle. Nylons, elastomers, and polyamides are extensively used in air ducts, suction pipes, and engine front covers, which reduce the weight of the vehicle. Reduction in the weight of vehicles leads to increased fuel efficiency, which is a huge thing in the automobile sector.

“Steps Being Taken for a Carbon-free Future”

Prominent vehicle plastic producers are taking steps toward a carbon-free future. Recycled products are trending. New products can be formed by using recycled content or plant-based biomass, which will reduce the burden on the environment. These products are more durable and possess the same properties as new components, such as resistance to chemicals, pressure, and heat.

As such, companies are taking initiatives to reduce their carbon footprint by developing and launching new products that are manufactured using recycled materials. These are easy to use and can be recycled again to make new products.

Other primary attributes of the growth of the market are expansions, mergers, and new product launches, through which, manufacturers are reaching new heights and coming up with new solutions and alternatives for conventional materials. Innovation always strengthens a company’s presence in the market and helps in expanding its product portfolio.

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Which Factors are Troubling Automotive Plastic Producers in India?

“Volatility in Prices of Raw Materials, Environmental Impact, and Industry Regulations”

The supply and prices of crude oil have been changing due to the political scenario and ongoing geopolitical tensions between Russia and Ukraine. The scarcity of raw materials and fluctuations in their prices will affect the cost structure of the final product. This may create a negative impact on the market.

The manufacturing process of automotive plastics includes the emission of gases that have an adverse effect on the environment. The manufacturing of these plastics also involves the formation of by-products that are directly disposed of in water bodies or landfills, which negatively impacts the environment. Extensive usage of plastics is harmful to nature as they take decades to decompose. Recycling also involves complex processes and the decomposition of these plastics takes more time.

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Region-wise Insights

What is the Growth Outlook for Automotive Plastic Suppliers across India?

“North India Leading Regional Market in India”

Based on regions, the North Indian region is dominant in India’s automotive plastics market. Almost 39% of automotive plastics produced in India are consumed by North India owing to the presence of prominent manufacturers and their strong distribution networks in the region.

Top automotive companies have their production plants in North India. A few of them include BMW India Pvt. Ltd., Eicher Motors Limited, Ford India Pvt. Ltd., Federal-Mogul Goetze India Ltd., Hero MotoCorp Ltd., Honda Cars India Ltd., Hyundai Motor India Ltd., HD Motor Company India Pvt Ltd, India Yamaha Motor Pvt Ltd, and Maruti Suzuki India Ltd., which has resulted in the high production of vehicles in the region.

Category-wise Insights

Which is the Leading Product Type of Automotive Plastics?

“PolyPropylene to Bring in High Revenue Streams for Market Players”

Based on product type, polypropylene is expected to dominate the sales of automotive plastics across India. The segment is anticipated to contribute more than 17% share of the Indian market valuation. Polypropylene is used in the automobile sector for gas cans, chemical tanks, wire insulation, and bumpers. For composites made of natural fibers, polypropylene is widely used as a thermoplastic binder component.

Polypropylene is applied in door panels, consoles, seatbacks, trunk liners, and a host of other automotive applications. The demand for polypropylene is significant due to its high application in the automotive industry, which results in a prominent market share being accounted for by polypropylene plastics.

Where is the Application of Automotive Plastics Substantial?

“High Usage of Automotive Plastics in Vehicle Interiors”

Based on the utilization of plastics in automotive vehicles, the market is segmented into exteriors, interiors, and engine surrounding. Interior application of automotive plastics is dominant in the market. The interior application of plastics in vehicles accounts for more than 50% of the overall market share.

In India, buying a car is considered a long-term investment, an asset whose benefits are to be reaped for many years. The interior portion of automobiles includes heating, ventilation, air conditioning, steering wheel, dashboard, seats, door panels, and other parts. As customers emphasize more on cabin experience, car interiors will assume a central role in the new automotive world.

Competitive Landscape

Prominent automotive plastic manufacturers are investing significantly in expansion strategies. Key players are establishing new manufacturing units and concentrating their efforts on boosting their production capacity to increase their market share and better meet the rising demand for automotive plastics.

A significant number of value chain-connected enterprises are bolstering their R&D capacities to create new production technologies.

For instance,

  • In Oct 2022, BASF, Mercedes-Benz, Pyrum Innovations AG, and WITTE Automotive collaborated to produce automotive components from mass-balanced plastics.
  • In April 2021, Solvay launched Amodel® Supreme PPA, a new segment of high-performance polyphthalamide (PPA) compounds that are ideal for highly demanding e-mobility and metal replacement applications.

India Automotive Plastics Industry Report Scope

Attribute

Details

Forecast Period

2022 to 2032

Historical Data

2017 to 2021

Market Analysis

  • USD Million for Value
  • Tons for Volume

Regions Covered

  • North India
  • South India
  • East India
  • West India

Key Market Segments Covered

  • Product Type
  • Application
  • Vehicle Type
  • Region

Key Companies Profiled

  • BASF SE
  • Sumitomo Chemical Co., Ltd.
  • Saudi Basic Industries Corp
  • DuPont de Nemours, Inc.
  • Prima Pvt. Ltd
  • Solvay SA
  • The Dow Chemical Company
  • LG Chem Ltd
  • Champion Plastics Pvt. Ltd
  • PVG Automotive Pvt. Ltd
  • G.V. INDUSTRIES
  • I-TECH PLAST INDIA PRIVATE LIMITED
  • Injecto Plast Pvt. Ltd.
  • Omico Plastics, Inc.
  • Prime Plast

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • Driver
  • Restrain
  • Opportunity and Treat Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

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India Automotive Plastics Industry Segmentation

Product Type:

  • Polypropylene
  • Polyurethane
  • Acrylonitrile Butadiene Styrene
  • Polyvinyl Chloride
  • Polyethylene
  • Polystyrene
  • Polycarbonate
  • Polyamide
  • PMMA
  • Plastic Composites
  • Others

Vehicle Type:

  • Three Wheelers
  • Passenger Cars
    • Compact
    • Midsize
    • Luxury
    • SUVs
  • LCVs
  • HCVs
  • Electric Cars
    • BEVs
    • HEVs
    • PHEVs

Application:

  • Exteriors
    • Bumpers
    • Tailgates/Liftgates, Hoods
    • Body Hardware
    • Others
  • Interiors
    • Seats
    • Dashboards
    • HVAC
    • Others
  • Engine Surrounding
    • Engine Covers/Valves
    • Covers
    • Fuel Hoses/ Lines

Region:

  • North India
  • South India
  • East India
  • West India

- Companies Covered in This Report -

  • BASF SE
  • Sumitomo Chemical Co., Ltd.
  • Saudi Basic Industries Corp
  • DuPont de Nemours, Inc.
  • Prima Pvt. Ltd
  • Solvay SA
  • The Dow Chemical Company
  • LG Chem Ltd
  • Champion Plastics Pvt. Ltd
  • PVG Automotive Pvt. Ltd
  • G.V. INDUSTRIES
  • I-TECH PLAST INDIA PRIVATE LIMITED
  • Injecto Plast Pvt. Ltd.
  • Omico Plastics, Inc.
  • Prime Plast

- Frequently Asked Questions -

The Indian market for automotive plastics was valued at US$ 1.64 billion at the end of 2021

The India automotive plastics market is estimated to reach a valuation of US$ 4.51 billion by 2032.

Demand for automotive plastics increased at 8.5% CAGR from 2017 to 2021.

From 2022 to 2032, the market is predicted to expand at a CAGR of 9.7%.

Polypropylene accounts for a significant market share in India.

Interior application of automotive plastics is expected to increase at a noteworthy rate in the country.

BASF SE, Sumitomo Chemical Co., Ltd., Saudi Basic Industries Corp, DuPont de Nemours, Inc., and Dow Inc. account for 50% to 55% market share.

Capacity expansions and product launches are key trends in the Indian market for automotive plastics.

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