Project report for Air and Oil Filter Industry

The Indian automotive filters market is segmented into air, fuel and oil filters. Oil filters are projected to witness significant growth in terms of revenue as they are changed frequently and plays an important role in vehicle lubrication system. These filters protect oil pumps from damage and wear & tear and extending the life of engine oil by removing carbon deposits, abraded metals, soot particles and dust. The average life cycle of vehicle has witnessed an increasing trend in recent years owing to the technological improvements across the automotive industry. For instance, the average vehicle age on road in India is over 11 years. High maintenance cost & concern related to engine damage of old vehicles is anticipated to boost the product demand. The unfiltered oil in the car may lead to saturated & hard particles that can damage and affect the overall engine quality.

Automotive filters are designed to help the engine of a vehicle to operate in a smooth manner, for improving the efficiency and reduction of maintenance cost of the vehicle. Filters are used in vehicles for oil purity, fuel purity, air purity, and emission exhaust purity. Their key purpose is to eradicate harmful particulates including dust and metal particles which results in vehicle performance deterioration. Automotive filters maximize flow of clean air in order to minimize engine damage as it requires continuous supply of fresh air for its smooth operations and enhanced life span. High gasoline prices are expected to shift manufacturers focus on reduced fuel consumption. All modern vehicles including light & heavy commercial vehicles, two wheelers, and passenger cars are equipped with different filters for upgradation of power and vehicle efficiency.

India automotive filter market is projected to grow at a CAGR of more than 10% during 2017 to 2023. Growth in the market is expected to be fueled by growing automobile sales, expanding vehicle fleet size and increasing purchasing power of consumers in the country. Moreover, government support in the form of numerous initiatives such as National Automotive Testing and R&D Infrastructure Project (NATRiP), Focus Market Scheme (FMS), Automotive Mission Plan 2016-2026, National Electric Mobility Mission Plan (NEMMP) 2020 and ‘Make in India’ program are anticipated to have a positive impact on the country’s automotive filter market during forecast period. 

The future of the automotive filter market in India looks promising with opportunities in passenger cars, light commercial vehicles and heavy commercial vehicles. The major drivers of growth for this market are recovery in vehicle production and sales, increased miles driven per vehicle, more stringent government and environmental regulations, and increasing focus of vehicle owners on preventive maintenance. 

The outbreak of COVID-19 has impacted and disrupted the supply chain of the entire automotive ecosystem, with halt in production facilities across the globe. This scenario is expected to affect the automotive filters market, as the growth of the market is directly related to the production of vehicles. The decline in vehicle production is expected to adversely affect the automotive filters market.