India Automotive LED Lighting Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

India Automotive LED Lighting Market Analysis

The India Automotive LED Lighting Market size is estimated at 0.65 billion USD in 2025, and is expected to reach 1.16 billion USD by 2030, growing at a CAGR of 12.38% during the forecast period (2025-2030).

The Indian automotive lighting industry is experiencing significant technological advancement and innovation, particularly in the integration of advanced lighting solutions. Leading automotive lighting manufacturers in India are actively expanding their product portfolios with sophisticated offerings, as evidenced by HELLA's introduction of FlatLight technology in January 2023 and the expansion of its Black Magic auxiliary headlamp series with 32 new lightbars in March 2023. The industry's commitment to innovation is further demonstrated by substantial investments in research and development, with companies like Marelli establishing new technical R&D centers to enhance their capabilities in mechanical design simulations for automotive lighting products.

The electric vehicle segment is emerging as a crucial growth catalyst for automotive LED lighting adoption. In May 2023, India's retail sales of electric two-wheelers reached a significant milestone of 104,755 units, marking a 57% increase from the previous month. This surge in EV adoption is creating new opportunities for automotive lighting manufacturers in India, as EVs typically incorporate advanced lighting systems. The commercial vehicle sector is also witnessing remarkable growth, with overall sales increasing from 716,566 to 962,468 units in FY 2022-2023, indicating expanding opportunities for LED lighting implementation across vehicle categories.

The industry is benefiting from supportive government policies and manufacturing initiatives. The Production Linked Incentive (PLI) scheme has attracted over 50 companies to submit applications for LED production, with proposed investments reaching INR 6,000 crores. This government support is fostering domestic manufacturing capabilities and encouraging technological innovation in the automotive LED lighting sector. The industry's production capabilities are demonstrating strong momentum, as evidenced by the total production of 2.08 million units of passenger vehicles, three-wheelers, two-wheelers, and quad bikes in July 2023.

Safety considerations and regulatory compliance are driving the adoption of advanced lighting solutions across vehicle segments. The integration of LED daytime running lamps (DRL) with projector lights in frontal lighting has become a prominent trend, with major manufacturers like Tata, Hyundai, and Mahindra incorporating these features in their upcoming vehicles. The industry is particularly focused on addressing safety concerns related to adverse weather conditions, as accidents under challenging visibility conditions accounted for 16.8% of total road accidents in 2021. This emphasis on safety is driving innovations in fog lamps, hazard lights, and other critical lighting components, leading to increased adoption of automotive LED technology across vehicle categories.

India Automotive LED Lighting Market Trends

Homegrown automotive brands are promoting economical passenger and commercial vehicles

• The total automobile vehicle production in India stood at 27.47 million units in 2022, and it was expected to reach 29.06 million units in 2023. The COVID-19 outbreak impacted the auto industry's entire operations. In April 2020, the auto industry was completely shut down, and no sales were recorded. Sales started in May 2020, but even then, they were far lower than they had been at the same point in 2019. According to a calculation by the Society of Indian Automobile Manufacturers (SIAM), the shutdown decision caused a daily output loss of INR 2,300 crore (USD 277.07 million). However, the market rebounded in 2021, and it is projected to witness positive growth throughout the forecast period.
• TATA Motors, Mahindra & Mahindra, Ashok Leyland Ltd, Maruti Suzuki, and Bajaj Auto Ltd, among others, are the country's top automakers. India's automotive industry is expanding, with businesses emphasizing alternative fuels and improving the vehicle economy with eco-friendly fuels. For instance, Tata Motors introduced the Starbus Electric Bus, a passenger vehicle driven by alternative fuels, to satisfy the present and future passenger transportation needs in smart cities. Due to the energy-saving capabilities and high-lumen output of LED lights, they are being increasingly adopted in vehicles.
• Vehicle lighting is still a crucial component. Lighting enhances the aesthetic appeal of a vehicle's interior and exterior while contributing to vehicle safety. For instance, in September 2021, more than 50 companies in India submitted applications for production-linked incentives for LEDs and other products, with a proposed investment of INR 6,000 crores (USD 722 million). Such investments by companies and the government are expected to drive the overall adoption of LED lighting in India.

Government policies are helping extend the network of charging stations

• Currently, India is in its developing phase. By March 2023, there were 6,586 public charging stations (PCS) operational in the country. The Government of India consistently demonstrates its commitment to establishing India as one of the significant players in the EV industry by introducing initiatives for electric vehicles.
• As India is developing, the electric vehicle industry is also picking pace, with the possibility of 100% FDI, new manufacturing plants, and an increased push to improve charging infrastructure. The government is promoting the installation of EV charging stations by providing capital subsidies, including FAME-II, PLI SCHEME, Battery Switching Policy, Special Electric Mobility Zone, and tax reduction on EVs. In April 2019, the FAME II plan was introduced with an USD 1204.65 million budget to support 500,000 e-three-wheelers, 7,000 e-buses, 55,000 e-passenger vehicles, and a million e-two-wheelers. The purpose was to encourage electric vehicle adoption in India. The plan was supposed to end in 2022. In September 2021, a PLI Scheme, or Production-Linked Incentive Scheme, for the automotive sector was approved by the Cabinet to increase the manufacturing of electric and hydrogen fuel cell vehicles.
• Additionally, as a value addition under the PLI scheme, investments in the LED lighting market are expected to be around 40% to 75%. This would also result in the manufacturing of components or sub-assemblies that were originally not manufactured in India. Such investments by the government are expected to drive the overall LED lighting market in India, including automotive LEDs. Further growing demand for EVs in India is expected to boost the demand for EV charging infrastructure, which would also create the need for automotive LEDs during the forecast period.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Automotive Utility Lighting

Headlights Segment in Automotive LED Lighting Market

Headlights continue to dominate the automotive LED headlight market in India, accounting for approximately 35% of the total market value in 2024. The segment's prominence is driven by stringent safety regulations that mandate specific brightness levels, with headlights not exceeding 3,000K or 3,000LM being the legal maximum for vehicle installation. The increasing adoption of automotive LED headlamps market in two-wheelers, particularly with the mandatory Automatic Headlights On (AHO) feature, has significantly contributed to the segment's market leadership. The segment is also witnessing strong growth in the passenger and commercial vehicle segments, especially with the rising demand for electric vehicles that predominantly feature LED headlight systems.

Reverse Light Segment in Automotive LED Lighting Market

The reverse light segment is emerging as the fastest-growing category in the automotive LED lighting market, projected to grow at approximately 12% during 2024-2029. This remarkable growth is primarily driven by the increasing implementation of advanced driver assistance systems (ADAS) and the government mandate for reverse parking systems in all passenger and commercial vehicles. The segment's growth is further fueled by the rising number of parking-related accidents and the growing consumer demand for advanced vehicle features in India's space-constrained urban areas. The expansion of the electric vehicle market, particularly in the commercial vehicle segment, is also contributing to the increased adoption of LED reverse lights.

Remaining Segments in Automotive Utility Lighting

The automotive utility lighting market encompasses several other crucial segments including directional signal lights, daytime running lights (DRL), stop lights, tail lights, and other auxiliary lighting solutions. Directional signal lights represent a significant portion of the market due to their mandatory installation requirements and frequent replacement needs. DRLs are gaining prominence with increasing safety awareness and regulatory requirements. Stop lights and tail lights continue to be essential components in vehicle safety systems, with LED technology increasingly replacing traditional lighting solutions. The auxiliary lighting segment serves specialized needs across different vehicle categories, from fog lamps to automotive interior LED lighting, contributing to overall market growth.

Segment Analysis: Automotive Vehicle Lighting

Two-Wheeler Segment in Automotive Vehicle LED Lighting Market

The two-wheeler segment dominates the India two-wheeler LED lighting market, commanding approximately 44% market share in 2024. This significant market position is driven by the increasing adoption of LED lighting solutions in motorcycles and scooters, particularly with the government's emphasis on mandatory safety features like automatic headlight operation. The segment's growth is further supported by the rapid expansion of electric two-wheelers in India, with retail sales reaching new peaks and manufacturers introducing innovative LED lighting solutions for enhanced visibility and safety. The implementation of BS6 norms has also necessitated major changes in overall vehicle design, leading to increased incorporation of energy-saving components, including LEDs. Additionally, the urban Indian market for two-wheelers shows strong penetration, with nearly 57 of every 100 young income-earning individuals supporting two-wheeler ownership, contributing to sustained demand for LED lighting solutions.

Commercial Vehicles Segment in Automotive Vehicle LED Lighting Market

The commercial vehicle LED lighting segment is emerging as the fastest-growing segment in the automotive LED lighting market, with a projected growth rate of approximately 13% during 2024-2029. This accelerated growth is primarily driven by the increasing demand for advanced lighting systems in heavy commercial vehicles and the rising awareness of road safety features. The segment's expansion is further bolstered by the growing adoption of electric commercial vehicles across various categories, from electric tippers to electric mini trucks, with major manufacturers like Tata, Ashok Leyland, and Eicher leading the transition. The implementation of advanced driver assistance systems (ADAS) and the government's emphasis on vehicle safety regulations are also contributing to increased LED adoption in commercial vehicles. Moreover, the strong momentum in electric bus sales, which jumped by 62% year-over-year, along with the establishment of new manufacturing facilities and R&D centers by major automotive players, is expected to drive continued growth in this segment.

Remaining Segments in Automotive Vehicle Lighting

The passenger cars segment represents a significant portion of the automotive lighting system market, with manufacturers increasingly incorporating LED lighting solutions across various vehicle categories. This segment is witnessing substantial transformation with the integration of advanced lighting technologies, particularly in luxury vehicles and electric cars. The trend toward premium features in mid-segment cars has led to increased adoption of LED lighting solutions, while the government's push for electric vehicles has created new opportunities for innovative lighting designs. The segment's growth is further supported by the rising consumer preference for vehicles with advanced safety features and aesthetic appeal, driving manufacturers to develop more sophisticated LED lighting solutions for both exterior and interior applications.

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We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 40+ free charts, the sections cover difficult to find data on various countries on Automotive Production, Lighting Electricity Consumption, Road Network, Number of Stadiums, Number of Charging Stations among others.