India Automotive HVAC Market Size, Share & Industry Analysis, By Type (Automatic and Manual), By Vehicle Type (Passenger Car [Sedan, Hatchback, SUV] and Commercial Vehicle [Light Commercial Vehicle, Heavy Commercial Vehicle]), By Component (Compressor, Condenser, Evaporator, Receiver Dryer, Expansion Valve, and Others), By Distribution Channel (OEM and Aftermarket), and Regional Forecast, 2024 – 2032

The India automotive HVAC market size was valued at USD 1.33 billion in 2023. The market is expected to grow from USD 1.43 billion in 2024 to USD 3.68 billion by 2032, exhibiting a CAGR of 12.6% during the forecast period.

An automotive Heating, Ventilation, and Air Conditioning (HVAC) system is designed to provide a comfortable interior environment inside a vehicle. This system is essential for controlling the temperature, humidity, and air quality within the cabin. It helps maintain the passenger’s comfort in varying weather conditions and enables precise regulation of the cabin environment.

The India automotive HVAC market growth is driven by the rising vehicle production and growing consumer preference for thermal comfort inside the vehicle. The advent of innovative HVAC technologies for vehicles that improve the cabin air quality is also supporting the market growth. The increased preference toward luxury vehicles across the country is fueling the market’s growth.

The decreased demand for vehicles and reduced production activities during the COVID-19 pandemic negatively affected the demand for automotive HVAC systems. The pandemic caused widespread disruptions in supply chains due to lockdowns and restrictions on movement. This led to shortages of components essential for HVAC systems, which delayed production and affected vehicle manufacturing. Many manufacturing facilities faced workforce shortages due to health concerns, quarantines, and government restrictions, which slowed down the production processes and affected overall productivity.

India Automotive HVAC Market Trends

Advanced Climate Control-based HVAC Systems is Leading Market Trend

One of the emerging and most significant technological trends in the automotive sector is the adoption of intelligent climate control systems. As the automotive industry moves toward greater connectivity and digitization, HVAC systems are becoming more sophisticated and user-centric. The integration of Internet of Things (IoT) technologies and Artificial Intelligence (AI) has led to the development of smart HVAC solutions that can adjust to personal preferences, environmental factors, and driving conditions.

These advanced automotive HVAC systems utilize sensors and real-time data to assess various elements, including cabin occupancy, external weather, and driver preferences. AI algorithms process this information to automatically optimize temperature, air distribution, and fan speed, ensuring a tailored and comfortable driving experience. Additionally, many of these systems incorporate voice recognition and touchless controls, minimizing the need for manual adjustments and enhancing driver safety.

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India Automotive HVAC Market Growth Factors

Developments in India’s Automotive Industry to Support Market Growth

The Indian automotive industry is growing significantly with an increase in vehicle production in the last few years through supportive government initiatives. Initiatives, such as the Automotive Mission Plan 2026, the National Electric Mobility Mission Plan (NEMMP), and the Production-Linked Incentive (PLI) scheme are supporting the development of the automotive sector in India. The increase in vehicle production across the country is another factor supporting the demand for the automotive HVACs. For instance, according to the Society of Indian Automobile Manufacturers (SIAM), vehicle production for the financial year 2023-2024 in India was 2,84,34,742 which was 9.62% higher than that of the financial year 2022-2023.

Post-pandemic, there is heightened awareness about the importance of indoor air quality. Consumers are increasingly seeking HVAC systems that offer air purification and better ventilation to ensure healthier indoor environments. Innovations in HVAC technology, such as smart and connected systems are enhancing user experience through features, such as remote control, automation, and real-time monitoring. These advancements are making HVAC systems more attractive to consumers.

RESTRAINING FACTORS

High Manufacturing and Maintenance Costs of HVAC Systems Can Restrain Market Growth

Automotive HVAC systems are intricate and consist of several key components, including compressors, condensers, evaporators, sensors, and control units. The production of these components involves the use of advanced materials and sophisticated manufacturing techniques, which contribute to higher production costs. Modern HVAC systems are being increasingly integrated with vehicle electronics and climate control features, which involve sophisticated software and sensors. This integration further adds to the cost.

The Indian automotive market is highly price-sensitive, especially in the economy and mid-range segments. The additional cost of installing HVAC systems can significantly impact the final price of a vehicle. This can deter both manufacturers from including them as a standard feature and consumers from opting for vehicles with advanced HVAC systems.

India Automotive HVAC Market Segmentation Analysis

By Type Analysis

Automatic Type HVAC Dominated Market Due to Growing Demand for Advanced Cooling System in Vehicles

By type, the market is divided into automatic and manual.

The automatic type HVAC segment held the leading market share in 2023 due to the growing demand for automatic climate control systems in vehicles. The rising consumer preference for automated temperature regulation and fan speed adjustment inside the vehicles is supporting the segment’s growth. The increasing preference for comfort among passengers is pushing manufacturers to integrate more advanced HVAC technologies, such as automatic systems that improve air conditioning efficiency.

The manual system segment held a significant India automotive HVAC market share in 2023 due to its cost-effectiveness. The affordability of manual systems enables consumers to own a vehicle as it decreases the final price of the car.

By Vehicle Type Analysis

Passenger Vehicle Dominated India Automotive HVAC Market Due to Increase in Vehicle Production

Based on vehicle type, the market is segmented into passenger car and commercial vehicle. The passenger car segment is further segmented into sedan, hatchback, and SUV, whereas the commercial vehicle segment is segmented into light commercial vehicle and heavy commercial vehicle.

The passenger car segment held the leading market share in 2023 due to the rising demand for well ventilated in-vehicle cabins. The increase in production of passenger cars in 2023 in India is also supporting the segment’s growth. For instance, according to the Society of Indian Automotive Manufacturers (SIAM), in the financial year 2023-2024, the Indian automotive industry produced 49,01,844 passenger cars, which was 6.86% higher than the previous year.

The commercial vehicle segment is expected to record the highest growth rate over the forecast period. The Indian government is planning to mandate air-conditioned cabins in trucks for all new trucks manufactured after 1^st October 2025. This initiative is expected to disrupt the commercial vehicle segment in the automotive HVAC market.

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By Component Analysis

Condenser Segment Held Leading Market Share Due to Its Crucial Role in HVAC System

Based on component, the market is segmented into compressor, condenser, evaporator, receiver dryer, expansion valve, and others.

The condenser segment held the leading share in the India automotive HVAC market due to its critical function in air conditioning systems. Condensers release heat absorbed from the cabin air. Moreover, improvements in condenser technology are set to boost the efficiency of HVAC systems, driving the segment’s growth.

The evaporator segment holds a significant market share. Evaporators absorb heat, thereby cooling the air inside the vehicle cabin. Technological advancements in evaporators are expected to increase the demand for advanced HVAC systems.

By Distribution Channel Analysis

OEM Segment Dominated Market Due to Growing Emphasis on Advanced HVAC Systems

Based on distribution channel, the market is segmented into OEM and aftermarket.

The OEM segment held the major market share as consumers in India are demanding advanced temperature-controlled cabins. Automotive manufacturers are emphasizing on integrating advanced HVAC systems during the manufacturing of the vehicles. The growing demand for luxury vehicles is another factor supporting the growth of the OEM segment.

The aftermarket segment is expected to record the highest growth rate due to the increasing demand for regular maintenance of automotive HVAC systems. Many vehicle owners are emphasizing on retrofitting the older HVAC systems with advanced cooling systems.

KEY INDUSTRY PLAYERS

Strategic Partnerships with OEMs is Key Strategy Adopted by Major Market Players

The Indian automotive HVAC market is consolidated with the dominance of key players, such as Denso, Subros, Doowon Automotive System, and Hanon System. These market players are emphasizing on partnerships with automotive OEMs to get a competitive advantage in the Indian automotive industry. These companies are also focusing on the development of automatic HVAC system compatible with various climate control options to support rapidly changing consumer needs. Companies are investing in R&D to develop more efficient HVAC systems. This includes the introduction of electric and hybrid vehicle HVAC systems that consume less power and provide better cooling

List of Top India Automotive HVAC Companies:

• DENSO Corporation (Japan)


• Subros Limited (India)


• Doowon Automotive System (South Korea)


• Hanon System (South Korea)


• Marelli Corporation (Japan)


• Dong-Ah Electric Components Co., Ltd. (South Korea)


• Jay Ushin Ltd. (India)


• MAHLE GmbH (Germany)


• Behr-Hella Thermocontrol India Private Ltd. (India)


• Valeo (France)

KEY INDUSTRY DEVELOPMENTS:

• April 2024 – Mahindra launched XUV 3XO, which will be the first in its category to provide the feature of dual-zone climate control. The Dual Zone climate control allows the driver and front passenger to independently adjust the temperature to their individual preferences. Additionally, the front and rear defoggers can be controlled remotely through a mobile application.


• October 2023 – AUO signed an agreement to acquire Behr-Hella Thermocontrol (BHTC), a joint venture between Hella GmbH & Company and Mahle, for approximately USD 663 million in cash. Both Hella and Mahle each hold a 50% stake in the joint venture.


• September 2023 – Denso launched Everycool, a commercial vehicle cooling system for trucks. This cooling system was aimed to provide comfort and energy efficiency to commercial vehicles when the engine is off. The system claims to reduce power consumption by approximately 57% as compared to a traditional cabin-wide cooling system.


• September 2023 – Subros Ltd. unveiled a thermal electric vehicle solution for hydrogen cell buses. The solution, which consists of an electric air-conditioning system combined with a battery management system, was developed internally, in line with the ‘Design in India’ and ‘Make in India’ initiatives.


• March 2021 – Lumax partnered with an automotive OEM in India to localize its HVAC product line. The company initially intended to import or assemble HVAC panels before embarking on an extensive localization program. Its Bawal plant in Rajasthan, which will primarily focus on manufacturing Printed Circuit Boards (PCBs) for lighting products, will also include production lines for HVAC systems.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects, such as leading market participants, competitive landscape, and types. Besides, it includes insights into the market trends, dynamics, and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market's growth in recent years.

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