Auto Chip Prices to Surge to $1200 per Vehicle by 2030: NITI Aayog

The automotive industry faces a substantial conversion while electric and intelligent vehicles drive manufacturing changes. According to NITI Aayog, the cost of vehicle semiconductor chips will surge to USD 1,200 per vehicle by 2030, which represents a 100 percent increase from the current USD 600 average price. 

NITI Aayog stated, "With the integration of these cutting-edge technologies, the cost of semiconductor chips per vehicle is projected to double, rising from USD 600 to USD 1,200 by 2030."

Vehicle advancement depends heavily on semiconductor technology because it lets drivers experience improved safety features with connectivity and improved intelligence in their driving experience. Manufacturing processes evolve with vehicle development to establish deep business connections between automotive industries and electronics producers and semiconductor companies as well as artificial intelligence operations. 

According to the research findings, the automotive industry has significant effects on steel and plastics companies along with textile producers, leather suppliers, and IT providers due to its status as a leading industrial sector. The global marketplace for automotive parts reaches $2 trillion in 2022 values, while traded parts contributions amount to $700 billion among these market values. The automotive sector has demonstrated ongoing expansion at 4–6% per year over the past five years while facing intelligent mobility changes and sustainable agenda to undergo a high-tech transformation.