India Electronic Power Steering Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

India Electronic Power Steering Market Trends and Insights

Surging Passenger-Car Output

Domestic passenger-car assemblies reached 4.3 million units in FY 2024-25, aided by Hyundai’s capacity build-out and Tata Motors’ multiple state expansions ^{[1]“Society of Indian Automobile Manufacturers”, Passenger Vehicle Production Data FY 2025, siam.in}. Higher volumes enable suppliers of the Indian electric power steering market to achieve scale benefits that trim per-unit costs and make column-assist systems viable even in compact hatchbacks. As SUVs and MPVs capture a rising share of production, demand for high-torque assistance grows. Regional clustering across Tamil Nadu, Maharashtra, and Haryana facilitates localized supply chains, allowing quicker just-in-time deliveries and higher localization content. CRISIL expects minimal passenger-vehicle output growth in FY 2026, ensuring sustained mid-term demand for electric steering units.

Stringent Safety Regulations (AIS 145, CMVR)

AIS 145 mandated features such as electronic stability control, lane-departure warning, and autonomous emergency steering, which only require the fine motor control provided by EPS ^{[2]"Automotive Research Association of India”, Automotive Industry Standards 145, araiindia.com} . OEMs are therefore accelerating the phase-out of hydraulic units regardless of incremental cost. Updated CMVR rules impose tighter steering-response benchmarks, further tipping the scales toward electronic control. Commercial-vehicle OEMs, historically reliant on hydraulic setups, are piloting electric solutions to comply. ECU demand also rises because these safety features need higher processing capacities, creating a feed-through boost for semiconductor content per vehicle.

Demand for Fuel-Efficient Drivetrains

Electric power steering eliminates the hydraulic pump’s parasitic losses, improving fuel economy by a minimal margin critical for OEMs meeting CAFE Phase II targets. EPS supports regenerative braking and precise control during electric-only operation in hybrid applications, further driving its use. Rising fuel prices elevate consumer sensitivity to mileage, prompting manufacturers to advertise EPS as a tangible efficiency upgrade. Penetration has thus expanded from premium models into mid-segment hatchbacks, especially in city-centric buyer profiles. EPS’s low standby power draw directly extends driving range for battery electric vehicles, underscoring its indispensability.

Electrification of Vehicle Parc

The PM E-DRIVE program channels incentives toward EV supply-chain localization and charging infrastructure, creating a virtuous cycle for adopting India's electric power steering market. EPS is standard in EV architecture because it minimizes battery drain. Fleet operators in metropolitan corridors trial electric light commercial vehicles with EPS to capture lower total ownership costs. Hybrid pickups and delivery vans in Bengaluru and Delhi further illustrate demand diversification beyond passenger cars. The shift also paves the way for software-defined steering functions such as automated parking.

Higher Unit Cost vs HPS in Entry Cars

Electric power steering costs one-fourth more than hydraulic systems for hatchbacks priced below INR 500,000. Budget-focused rural buyers remain unconvinced by long-term fuel savings, hampering EPS penetration in entry trims. OEM margins already squeezed by rising commodity prices make absorbing the premium challenging. However, domestic fabrication incentives for sensors and BLDC motors under the automotive component PLI are narrowing the gap. Suppliers expect a minimal cost decline within a couple of years as ECU localization scales, bringing parity closer and easing this restraint.

Import-Reliant Semiconductor Supply Chain

Microcontrollers and angle sensors essential for EPS are sourced mainly from Taiwan and South Korea, exposing the Indian electric power steering industry to geopolitical disruptions and currency volatility. The global chip crunch led to OEM production cuts of up to one-fifth, illustrating this vulnerability. Initiatives like Tata-Infineon’s collaborative innovation center in Bengaluru aim to localize design, yet commercial-scale wafer fabs will only go live in few years' time. Until then, Tier-1s must maintain higher inventory buffers and dual-sourcing strategies, adding working-capital strain.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Type: Column-Assist Systems Lead Market Evolution

Column-assist solutions captured 56.63% of the Indian electric power steering market share in 2025, reflecting their cost-performance sweet spot across compact and midsize platforms. The segment’s dominance is reinforced by minimal chassis redesign requirements, allowing OEMs to retrofit existing hydraulic platforms swiftly. Rack-assist units cater to premium SUVs where steering precision and higher torque are vital. Pinion-assist designs occupy a niche between the two, particularly in sedan applications where road-feel refinement is prioritized. Although steer-by-wire currently represents less than 1% of installations, its 6.45% CAGR indicates growing OEM attention, with Hyundai and Lexus showcasing concept models at the 2025 Auto Expo. Regulatory acceptance will be the inflection point that elevates adoption rates among mass-market brands.

Second-order benefits also materialize: steer-by-wire removes the steering shaft intrusion, enabling frontal crash-zone energy-absorption redesigns and larger infotainment displays. Suppliers such as JTEKT are developing failsafe algorithms that maintain directional control even if a single actuator fails, addressing latent safety concerns. Once regulatory clarity emerges, especially regarding redundant power supply standards, steer-by-wire will likely encroach on the rack-assist space. The column-assist will underpin cost-sensitive variants, ensuring it remains a mainstay of the Indian electric power steering market.

By Component Type: ECU Sophistication Drives Growth

Steering columns held 34.74% of the Indian electric power steering market in 2025, as every EPS façade requires a mechanical or electronic column. Yet electronic control units will outpace at a 6.51% CAGR through 2031 because ADAS integration needs higher processing headroom. The latest Infineon Aurix microcontrollers support ISO 26262 ASIL-D safety, allowing automotive firmware over-the-air updates that slash recall costs. Torque-and-angle sensors also evolve toward inductive designs, eliminating magnets and enhancing precision.

Over the forecast window, ECU average cost content per vehicle will jump exponentially as software-defined cars gain traction. Domestic suppliers like KPIT and Tata Elxsi provide middleware that reduces time-to-market for new steering functions. Such developments create an ecosystem wherein semiconductor design houses, embedded-software firms, and steering-system manufacturers collaborate under one roof, accelerating product cycles and reinforcing the Indian electric power steering market’s competitiveness.

By Vehicle Type: Passenger Cars Dominate Adoption

Passenger cars controlled 72.86% of the Indian electric power steering market in 2025 and are advancing at a 6.52% CAGR, driven by AIS 145, ride-quality expectations, and the surge of SUV body styles that demand precise torque delivery. Compact SUVs like Tata Nexon and Hyundai Venue now feature EPS, signaling price-down diffusion across all trims. Light commercial vehicles are in earlier adoption phases but show promise as e-commerce requires silent, low-maintenance delivery vans for urban logistics. Medium and heavy commercials retain hydraulic setups because extreme axle loads necessitate higher steering effort; however, dual-assist architectures blending hydraulic base with electric overlay are in prototype testing.

Fleet operators increasingly prioritize longer service intervals and reduced downtime, leading to significant gains in total cost of ownership. CRISIL forecasts a notable increase in the adoption of EPS in new sub-5-ton trucks over the coming years. This shift presents a considerable volume opportunity for India's electric power steering market.

By Sales Channel: OEM Integration Dominates

Factory fitment accounted for 80.55% of the Indian electric power steering market in 2025 because EPS calibration requires vehicle-level software integration and compliance certification. The aftermarket rose 6.46% CAGR as retrofit kits became more standardized, targeting taxi fleets and municipal buses seeking operational savings. Kalyani Powertrain’s conversion kits received Automotive Research Association of India approval in February 2025, bolstering confidence among fleet managers. Nonetheless, regulatory inspection frameworks remain stringent, meaning the aftermarket share is unlikely to surpass one-fourth over the next five years.

OEM preference is also driven by warranty coverage and safety liabilities. Tier-1 suppliers provide end-to-end diagnostics embedded in the vehicle’s central domain controller, which is difficult to replicate in the retrofit channel. As a result, the growth of most volumes in the Indian electric power steering market will still originate from new vehicle assembly lines.

By Motor Technology: BLDC Motors Establish Dominance

BLDC motors commanded a 62.74% of the Indian electric power steering market in 2025 and will rise at a 6.49% CAGR, securing their status as the de facto standard for next-generation EPS. Compared with brushed alternatives, BLDC designs deliver better thermal management and eliminate brush wear, aligning with India’s harsh operating temperatures that often exceed. Permanent magnet costs have moderated because of diversified sourcing from Vietnam and Australia, further narrowing the cost gap. SynRM (synchronous reluctance) pilot projects are underway at Nexteer’s Bengaluru R&D center, touting 2% higher efficiency, but mass adoption hinges on volume scale.

Motor-gearbox integration is another frontier; Sona Comstar’s 3-in-1 EPS drive module reduces footprint by 20% and improves NVH characteristics. Such innovation augments the Indian electric power steering market’s technical maturity and encourages OEMs to deploy EPS even on smaller A-segment cars where under-hood space is constrained.

Geography Analysis

Vehicle production is concentrated in Tamil Nadu, Maharashtra, and Haryana, which collectively house about three-fifths of passenger-car output. Chennai’s corridor, complemented by ancillary clusters in Sriperumbudur and Oragadam, draws column-assist manufacturing due to incentives covering land and stamp-duty reimbursement . Pune’s Chakan and Aurangabad zones benefit from multi-modal logistics that ease ECU imports and dispatches of finished goods. Gurugram-Manesar leverages Maruti Suzuki’s ecosystem, encouraging local Tier-1s such as JTEKT India to establish dedicated EPS lines.

Emerging belts like Gujarat’s Sanand and Karnataka’s Tumakuru are scaling rapidly. Gujarat offers one-fifth capital subsidies for EV-related components, compelling suppliers to hedge geographic risk by setting up satellite units. Tumakuru is earmarked for a semiconductor special-economic zone that directly feeds ECU lines. Andhra Pradesh’s Krishnapatnam port further enables outbound shipments, easing export of EPS sub-assemblies to Southeast Asia.

Regional policy competition has tangible effects on the size of the Indian electric power steering market by state. Tamil Nadu is forecast grow exponentially in terms of incremental passenger-car units by 2030, implying roughly 0.6 million incremental EPS units. Maharashtra’s share will evolve toward premium vehicles, tightening demand for rack-assist and steer-by-wire variants. Meanwhile, Uttar Pradesh, historically low on automotive production, is positioning around Greater Noida to attract EV startups, but the material volume impact will surface only after 2028 when assembly facilities mature.

Regulatory Landscape

India's EPS fitment is governed by the Central Motor Vehicles Rules (CMVR), with technical requirements framed through the Automotive Industry Standards Committee (AISC) and published via Automotive Research Association of India (ARAI) as Automotive Industry Standards (AIS). Steering-system safety and occupant-protection expectations are supported by standards such as IS 11939:1996 (impact protection requirements for steering control systems) and AIS-096 (steering mechanism behavior in a head-on collision), which affect OEM design validation, column collapse strategy, and packaging decisions for EPS platforms.

On the industrial-policy side, the Ministry of Heavy Industries administers the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry to support localized manufacturing of Advanced Automotive Technology products. For EPS suppliers, qualification under PLI reinforces localization of ECU, motor, and sensor value add, while ARAI-linked compliance and type-approval practices help keep software-controlled steering functions aligned with the evolving AIS catalog (including the May 2026 update).

Value Chain Analysis

The India EPS value chain begins with upstream inputs such as aluminum castings and machined housings, BLDC motors and magnets, torque and angle sensors, and semiconductor-heavy ECUs. It then moves to Tier-1 system integration (column-assist, pinion-assist, and rack-assist assemblies) and calibration at OEM vehicle platforms. Key India-active participants include JTEKT India, Rane Group entities (including Rane NSK and ZF Rane), Nexteer Automotive, and ZF Steering Gear (India), with manufacturing footprints clustered around automotive hubs such as Chennai and the Gurugram-Manesar belt. This setup supports just-in-time deliveries to passenger-vehicle assembly lines.

Downstream, OEM fitment dominates because EPS requires vehicle-level software integration and certification, while the aftermarket depends more on standardized retrofit packages and approvals. The chain is being reshaped by technology-transfer and localization arrangements, including Rane and ZF activity around EPS product collaboration and licensing for column-drive EPS technology (announced in January 2025), alongside the industry-wide localization emphasis highlighted in ACMA's FY2024-25 performance review (released July 2025).

Market Opportunities and Future Outlook

Import substitution and deeper localization of electronics remain visible whitespace for India EPS, especially given the import intensity around steering and drive transmission systems. ACMA reported that drive transmission and steering systems accounted for 56% of India's total auto component imports in FY26, pointing to a large addressable pocket for domestic machining, casting, ECU assembly, and integrated module manufacturing linked to EPS programs.

A second opportunity is the overlap between EPS electrification needs and the broader EV and advanced-component push inside the auto component sector. ACMA reported that the industry grew 12.7% in FY26, and that supplies to the EV segment represented 4.6% of OEM sales. This reinforces demand for higher electronic content (controllers, sensors, and power devices) that can also support EPS ECUs and motor drives. Partnerships and capability build-outs referenced in the report context, such as Tata-Infineon collaboration efforts in India and Tier-1 moves to add EPS lines and electrical-division capacity, further expand near-term procurement and localization programs for EPS-related components across passenger vehicles and emerging electrified LCV applications.