en.Wedoany.com Reported - Indian auto component manufacturers are poised for a new wave of growth driven by stricter emission, fuel efficiency, and safety regulations. Industry executives point out that the Corporate Average Fuel Efficiency Phase III (CAFE III) standards, Bharat Stage VII (BS-VII) emission norms, and more stringent safety requirements are expected to significantly boost demand for advanced technologies, electronics, and safety equipment in vehicles, opening up new market opportunities for suppliers.

Chandra stated that stricter fuel efficiency standards are pushing automakers to adopt fuel-saving engine technologies and turbochargers.

Benefits are already emerging. Tenneco Clean Air India estimates that the demand for advanced emission control and fuel-saving technologies under CAFE III and BS-VII standards could create an additional market opportunity of up to ₹130 billion for the company. Meanwhile, Bosch reported that its two-wheeler business surged by 69% due to increased demand for exhaust sensors following the rollout of OBD2 (On-Board Diagnostics Generation II) emission monitoring norms. Additionally, Advanced Driver Assistance Systems (ADAS), which use cameras, radar, and sensors to prevent accidents, will be introduced in phases, further boosting demand for electronics and safety equipment.

Industry executives said that despite short-term volatility from geopolitical tensions and supply chain disruptions, this regulatory cycle—covering fuel efficiency, emissions, safety, and electrification—is broader in scope than previous ones and is expected to significantly increase the component value per vehicle. Arvind Chandra, CEO of Tenneco Clean Air India, told the Economic Times (ET): "The combination of CAFE III and BS-VII standards represents an addressable market value of ₹130 billion per vehicle for us due to additional content."

Chandra noted that stricter fuel efficiency standards are driving automakers to adopt fuel-saving engine technologies and turbochargers. While these technologies help reduce carbon dioxide emissions, they may also increase particulate emissions, creating demand for gasoline particulate filters and advanced emission control systems.

The opportunities are not limited to emission technologies. Prashanth Doreswamy, President and CEO of AUMOVIO India, said that upcoming fuel efficiency and safety regulations are expected to increase the use of electronics, sensors, and software in vehicles.

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