Automotive TIC market set for accelerated growth driven by electric and autonomous vehicle regulations

The market for automotive-grade SD memory cards is projected to grow from US$1.7 billion in 2024 to US$2.9 billion by 2030, driven by the rise of connected and autonomous vehicles demanding high-performance, durable storage solutions.The market for automotive-grade SD memory cards is experiencing notable growth as increasingly sophisticated electronic systems become standard in modern vehicles. These specialized memory cards are engineered to withstand harsh vehicular environments—extreme temperatures, vibrations, and humidity—ensuring reliable data storage essential for vehicle safety, navigation, entertainment, and autonomous functions. As vehicle connectivity and automation advance, demand for durable, high-performance SD cards tailored for automotive applications continues to rise, making them critical components in today’s automotive ecosystem. Market forecasts estimate that the global automotive SD memory card industry, valued at approximately US$1.7 billion in 2024, is projected to expand significantly—reaching around US$2.9 billion by 2030—at a compound annual growth rate (CAGR) of approximately 8.7%, according to recent industry reports. These growth figures reflect the increasing integration of features such as high-definition cameras, advanced driver-assistance systems (ADAS), in-vehicle infotainment, and navigation systems that generate vast amounts of data needing reliable, high-capacity storage solutions. One key factor distinguishing automotive-grade SD cards from regular consumer versions is their robustness. They are designed to meet strict industry standards such as AEC-Q100, providing enhanced error correction, operating across a broad temperature spectrum (generally from -40°C to +85°C), and resisting shocks, vibrations, and electrical interference. Speed class ratings like UHS-I or UHS-II, along with U3 or V30 classifications, are vital for supporting high-definition video recording and swift data transfer, particularly in applications like dashcams and embedded sensors. Regarding capacity, the traditional segmentation lists sizes such as 8GB, 16GB, 32GB, and 64GB, with industry trends gradually favoring higher capacities to accommodate the continued growth of multimedia content, data logs, and AI-driven in-vehicle processes. While capacities beyond 64GB are increasingly common in general electronics, specific market data supports a focus on the listed sizes, and any mention of capacities over 64GB should be clearly supported by relevant sources or market developments. Major players in this space include brands like SanDisk (Western Digital), Swissbit, Delkin Industrial, Kingston Technology, Flexxon, Integral Memory, Nextbase, Samsung, Transcend, PNY, and Panasonic. These companies are committed to innovation, focusing on producing SD cards that excel in durability, speed, and security to meet the evolving demands of automotive applications. The industry sees ongoing advancements with the integration of new technologies such as AI, IoT, and cybersecurity features, all aimed at enhancing performance and data integrity in the vehicle environment. Regionally, Asia Pacific leads the market, accounting for roughly 45% of revenue due to the proliferation of automotive manufacturing hubs and the rapid adoption of connected vehicle technology in countries like China, Japan, and South Korea. These dynamics contribute to sustained demand for automotive-grade SD cards, particularly in industrial automotive applications. However, challenges such as regulatory compliance, supply chain disruptions, and the need for rigorous testing pose hurdles to market expansion. Manufacturers must ensure their cards meet strict standards for temperature resilience, vibration resistance, and electromagnetic interference, all critical for vehicle reliability and safety. Technological trends shaping the industry include increasing storage capacities, faster transfer speeds, and the adoption of higher-grade error correction technologies. The demand for SD cards supporting capacities of 64GB and above is rising, driven by the popularity of dashcams, high-resolution multimedia, and real-time data analytics within vehicles. Moreover, innovations like SD Express and microSD Express are gaining traction, offering higher data throughput suitable for the data-intensive needs of modern automotive systems. To optimize SD card performance and longevity, users are advised to select products rated for automotive use, regularly update system firmware, format cards appropriately (using FAT32 or exFAT, depending on capacity), and handle them carefully to prevent physical damage. Proper maintenance and adherence to recommended specifications help mitigate issues such as data corruption and device failure. In summary, the automotive-grade SD memory cards market is poised for sustained growth, driven by technological innovation, increasing data requirements, and stricter reliability standards. Stakeholders who stay aligned with emerging trends and standards will be well-positioned to capitalize on opportunities in this expanding arena of connected and autonomous vehicles. Source: Noah Wire Services

Volkswagen is negotiating a tariff reduction with the US government, aiming to ease financial strain and bolster its US and electric vehicle strategies amidst ongoing trade tensions and industry challenges.Volkswagen is pretty close to striking a deal with the US government over a tariff reduction, and honestly, that could really ease the heavy financial burden the German automaker has been feeling thanks to ongoing trade tensions. Oliver Blume, who’s the CEO of Volkswagen Group, mentioned that the company has lost “several billion euros” so far this year because of tariffs imposed by the Trump administration—these tariffs have hit especially hard on their luxury brands like Porsche and Audi. Right now, US tariffs are set at 27.5% on European vehicle imports. Blume called this rate a "burden" for the group, even after they were promised it would be reduced to 15%. During the IAA Mobility show in Munich, Blume spoke quite openly about Volkswagen’s strategy to handle these costs. He talked about exploring options like increasing local manufacturing in the US—including a possible Audi plant—with a decision expected by the end of 2025. “We are counting on our own offer investing heavily in the US,” he said, emphasizing that negotiations are ongoing to try and get tariff rates below the current 15%, and maybe even secure some tax breaks tied to these investments. This approach fits with Volkswagen’s broader plan—how they want to invest significantly in the US market to restore a more level playing field, which the CEO described as an “asymmetric deal” between the US and EU. Now, the company’s financial vulnerabilities are especially sharp when it comes to Porsche. Unlike some of its peers like Audi, BMW, or Mercedes-Benz, Porsche doesn’t have a big manufacturing presence in the US, which means it’s taking the full hit of import tariffs on its cars. To make matters worse, Porsche is also seeing demand weaken in China—sales have reportedly fallen sharply by around 28%. Industry analysts are pointing out that this double whammy—tariffs in the US and shrinking markets in China—puts Porsche in a sort of “sandwich position,” which is never ideal. The struggles are reflected in Porsche’s stock price, which has been under pressure and is set to be removed from Germany’s DAX blue-chip index soon, highlighting just how turbulent things are for the brand right now. On the product side, Volkswagen is really pushing ahead with electrification as a way to revive sales and grab more market share across Europe. At the Munich event, Blume unveiled a concept for a new affordable, compact electric car, aiming to meet rising consumer demand for e-mobility. The plan is to snag about 20% of the compact electric car market in Europe—a pretty ambitious target. They want models that are both accessible and profitable. Interestingly enough, this is part of a wider industry move, as competitors like BMW are developing region-specific versions of electric SUVs, including a Chinese-market model of the iX3 that’s customized with local software and features to suit regional tastes. The broader impact of the Trump-era trade policies is felt across the European auto industry. Beyond Volkswagen, brands like Jaguar Land Rover and Chinese-owned Lotus have announced major job cuts, partly because of economic uncertainties spun up by tariffs. Plus, the European auto sector is also facing stiff competition from Chinese automakers—brands like BYD, Changan, and GAC have almost doubled their market share in Europe, hitting about 4.8% in the first seven months of 2025. This rising Chinese presence is forcing European carmakers to rethink their strategies, especially with discussions about whether the EU’s upcoming restrictions on combustion engines are the right move, since some European executives think that timing might not be ideal given the intense market pressures. Trade diplomacy remains a tricky subject. While the EU and US have apparently reached a tentative deal to bring tariffs down to 15%, there’s skepticism in the European Parliament. Bernd Lange, who heads up the trade committee, has expressed doubts about whether such an agreement will hold up or be fair, especially considering ongoing US tariff hikes on steel and other goods. On the flip side, the European Commission sees this as a practical step to keep trade flowing—yet opposition persists within political circles, and legal challenges continue as courts look into whether these tariffs are even lawful. Economists and industry leaders warn that these policies could harm growth, investments, and supply chains in key sectors like automotive manufacturing. All of this underscores how complicated the situation really is—grope for trade deals, geopolitical tensions, and market shifts in China and the US all happening at once. Volkswagen’s push to localize production in the US and to accelerate its electric vehicle ambitions fits into a broader industry effort to cut down on the tariff impact and stay competitive against rising rivals. Still, the landscape remains pretty fluid. The next few months are going to be critical, really, in seeing whether Volkswagen and other European automakers can navigate this tricky trade environment and establish a new framework that supports sustained growth in a world that’s changing so rapidly. Source: Noah Wire Services

Samvardhana Motherson International sets an ambitious target to reach $108 billion in revenue by FY2030, bolstered by acquisitions, diversification, and a focus on profitability amid industry expansion and operational restructuring challenges.Samvardhana Motherson International Ltd, a prominent player in the global auto components sector, has announced an ambitious growth strategy aiming for $108 billion in revenue by FY2030—more than four times its current scale. Alongside this, the company targets a 40% return on capital employed (RoCE), emphasizing a focus on enhancing profitability and operational efficiency. This outlook aligns with a broader industry trajectory; by FY25, India’s auto components and equipment sector reached approximately $80.2 billion in turnover, marking a 9.6% annual growth driven by vigorous vehicle production, electrification efforts, and technological advancements. Industry projections estimate that by 2026, this sector could constitute up to 7% of India's GDP, underscoring its increasing economic importance. Strategically, Samvardhana Motherson is expanding its global footprint through diversified operations across multiple countries, deliberately avoiding reliance on any single market for more than 10% of its revenue. The company predominantly anticipates over 75% of its growth stemming from recent acquisitions. It also plans to list additional group entities and maintain a dividend payout ratio of up to 40%. Although US tariffs on Indian auto parts have posed concerns, the company reports that their direct impact has been minimal, given that most U.S. sales are USMCA-compliant, with tariff mitigation supported by localization initiatives; for non-USMCA-compliant parts, agreements are in place to pass on related costs. Investment analysts have expressed confidence, with InCred upgrading its rating to an ‘add’ with a target price of Rs 117, indicating a potential upside of approximately 24%. JPMorgan and Jefferies have also maintained positive outlooks, issuing ‘overweight’ and ‘buy’ ratings with target prices of Rs 105 and Rs 110, respectively. Nonetheless, some cautioned that achieving a fourfold increase in sales over five years is highly ambitious, and reaching the 40% RoCE target will be critical in validating the company’s aggressive growth projections. The latest quarterly results from Q1 FY26 serve as a nuanced indicator of progress. The company reported a revenue of Rs 30,212 crore, a 4.7% year-on-year rise, reflecting steady top-line growth. However, net profit experienced a significant downturn, reported at Rs 606 crore in one source, or approximately Rs 512 crore as per other reports. This profit decline, ranging from about 39% to nearly 49% compared to the same quarter previous year, was mainly attributed to structural challenges in Western and Central Europe, as well as costs related to integration and restructuring initiatives. The company has initiated a EUR 50 million cost-saving plan in Europe, with Rs 136 crore booked in restructuring expenses in Q1, with expected operational benefits materializing in the later part of the year. Margins were under pressure due to initial costs associated with launching multiple greenfield units, though management remains optimistic that ramp-up over upcoming months will improve profitability. Capital expenditure guidance for FY26 remains at Rs 6,000 crore, evenly split between growth and maintenance, with Rs 1,200 crore invested in Q1. Currently, three greenfield units are operational, and eleven more are under development, targeting markets beyond automotive applications, including electrical distribution systems, vehicle interior and exterior modules, rear vision systems, plastics, lighting, electronics, precision metals, and telematics. Regarding exposure to tariffs, the company notes that its direct exposure remains limited, with exports to the U.S. amounting to less than $10 million in Q1 FY26. Most US sales are USMCA-compliant, supported by localization efforts, and the company has arrangements to pass on costs for non-compliant parts, helping to mitigate tariff risks. Additionally, the company is actively exploring new supply chain solutions to further insulate itself from potential disruptions. In summary, Samvardhana Motherson is positioning itself for significant long-term growth through aggressive expansion, strategic acquisitions, and operational enhancements. While the recent quarterly results reflect some near-term margin pressures and execution challenges, the company’s overall trajectory demonstrates confidence in its ability to leverage industry growth and capitalize on new markets. Monitoring its progress toward RoCE targets and successful integration of acquisitions will be key indicators of its future success. Source: Noah Wire Services