Press release
India Automotive HVAC Market Size, Share and Growth | 2025-2034
India Automotive HVAC Market OutlookAccording to the report by Expert Market Research (EMR), the India automotive HVAC market is poised for significant expansion, projected to grow at a CAGR of 10.30% between 2025 and 2034. The market's robust growth is being driven by increasing automobile production, heightened consumer expectations for comfort, and technological advancements in vehicle climate control systems. As the Indian automotive industry continues to evolve with rising consumer affluence and stringent environmental regulations, the demand for efficient and integrated HVAC (Heating, Ventilation, and Air Conditioning) systems is expected to rise steadily.
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Automotive HVAC systems are responsible for maintaining thermal comfort and air quality inside vehicles. These systems play a vital role in enhancing the driving experience by regulating interior temperature and filtering pollutants, allergens, and dust. As both passenger and commercial vehicles in India adopt advanced features to attract discerning buyers, HVAC systems have become a standard component rather than a luxury.
India Automotive HVAC Market Size
The India automotive HVAC market has been witnessing notable growth due to increasing vehicle ownership and improved infrastructure. In 2024, the market size was valued substantially, driven by an upsurge in demand for mid-range and premium vehicles equipped with modern HVAC units. With rising disposable incomes and growing urbanisation, the vehicle penetration in tier-II and tier-III cities is contributing to the expansion of the automotive HVAC market across the country.
India Automotive HVAC Market Share
Passenger vehicles dominate the Indian automotive HVAC market in terms of share, owing to higher sales volumes and the increasing inclusion of HVAC systems as standard across models. However, the commercial vehicle segment is also registering accelerated growth, propelled by demand for comfort and safety features among fleet operators and logistics providers. Regionally, the western and northern parts of India-particularly Maharashtra, Gujarat, Delhi NCR, and Punjab-command a substantial share of the market due to the presence of major automotive hubs and a large base of vehicle users.
India Automotive HVAC Market Trends
Several notable trends are shaping the India automotive HVAC market. One prominent trend is the growing adoption of automatic climate control systems, especially in mid-range and premium vehicles. These systems offer improved temperature management, fuel efficiency, and passenger comfort, aligning with rising consumer expectations for convenience and luxury.
The electrification of vehicles is another significant trend, prompting innovations in HVAC system design. Traditional HVAC systems in internal combustion engine (ICE) vehicles rely on engine power, whereas electric vehicles require more energy-efficient alternatives. As a result, manufacturers are investing in electric compressors and heat pump technologies tailored for EVs.
Moreover, increasing consumer focus on in-cabin air quality has given rise to HVAC systems equipped with advanced filtration and air purification capabilities, including PM2.5 filters and ionisers. This trend is particularly relevant in urban Indian cities, where concerns regarding pollution levels are driving demand for health-conscious automotive solutions.
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Drivers of Growth
The India automotive HVAC market is propelled by a number of growth drivers. A key factor is the consistent rise in automotive production and sales in the country. With India being one of the largest automotive markets globally, the demand for vehicles equipped with HVAC systems is on an upward trajectory.
The rapid urbanisation across Indian states and the growing population of middle-class consumers have also contributed to a higher demand for personal vehicles with enhanced comfort features. Consumers are increasingly prioritising vehicles with climate control features, especially in regions with extreme weather conditions.
Additionally, the Indian government's push towards electric mobility is supporting the development and integration of HVAC systems in EVs. Incentives under schemes such as FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) and the rise in EV infrastructure are fostering the growth of EV-compatible HVAC technologies.
India Automotive HVAC Market Segmentation
The market can be divided based on technology, component, propulsion type, vehicle type, and region.
Market Breakup by Technology
Manual
Automatic
Market Breakup by Component
Evaporator
Compressor
Condenser
Expansion Valve
Receiver-drier
Others
Market Breakup by Propulsion Type
IC Engine
Electric Powered
Market Breakup by Vehicle Type
Passenger Cars
Light Commercial Vehicle
Heavy Commercial Vehicle
Market Breakup by Region
North India
East and Central India
West India
South India
Industry Key Players
Some of the major players explored in the report by Expert Market Research are as follows:
Subros Limited
Denso Corporation
Sanden Vikas (India) Ltd.
MAHLE GmbH
Valeo
Hanon Systems
Delphi Technologies
Samvardhana Motherson Group
Air International Thermal Systems
Others
Challenges and Opportunities
Despite the promising outlook, the India automotive HVAC market faces several challenges. The high cost of advanced HVAC systems, especially those with automatic controls and filtration technologies, can be a barrier in price-sensitive segments. OEMs are often under pressure to balance cost and performance, which can affect the penetration of premium HVAC features in entry-level vehicles.
Moreover, HVAC systems significantly influence the energy consumption of EVs, and improving their efficiency without compromising comfort remains a technological challenge. The need for ongoing R&D investment, coupled with supply chain constraints and dependency on imported components, can also impact market expansion.
Nevertheless, the market presents numerous opportunities. The rising adoption of EVs in India offers a fertile ground for innovation in HVAC systems. As manufacturers work to tailor HVAC solutions to the specific needs of EVs, there is potential for market differentiation and the development of proprietary technologies.
In addition, the growing consumer awareness of environmental and health factors creates opportunities for the integration of eco-friendly refrigerants, energy-saving technologies, and advanced air purification systems. Localising production and leveraging the government's Make in India initiative can also support cost reduction and drive long-term growth.
Market Forecast
The India automotive HVAC market is projected to witness robust growth throughout the forecast period of 2025-2034. With a CAGR of 10.30%, the market is expected to experience substantial gains, fuelled by a growing automobile market, rising consumer expectations, and advancements in vehicle technologies.
Passenger vehicles will continue to dominate the market, but commercial and electric vehicle segments are likely to see faster growth rates due to policy support and increased fleet electrification. OEMs are anticipated to maintain a stronghold in the market, although the aftermarket segment will gain importance as older vehicles require maintenance and upgrades.
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