Indian Automobile Industry Analysis

The Indian automobile industry contributes almost 6.4% of India's GDP and 35% of manufacturing GDP and is a leading employment provider.

Advantage India

Growing
Demand

* Rising middle class income and a huge youth population will result in strong demand.

* In October 2022, the total production of passenger vehicles*, three wheelers, two wheelers, and quadricycles was 2,191,090 units.

Growing Demand

Opportunities

* India could be a leader in shared mobility by 2030, providing opportunities for electric and autonomous vehicles.

* Focus is shifting to electric vehicles to reduce emissions.

* The electric vehicles industry is likely to create five crore jobs by 2030.

Opportunities

Rising
Investment

*The automobile sector received cumulative equity FDI inflow of about US$ 33.53 billion between April 2000-June 2022.

*The Government of India expects the automobile sector to attract US$ 8-10 billion in local and foreign investments by 2023.

Rising Investment

Policy
Support

* In September 2021, the Indian government issued notification regarding a PLI scheme for automobile and auto components worth Rs. 25,938 crore (US$ 3.49 billion).

* The Automotive Mission Plan 2016-26 is a mutual initiative by the Government of India and the Indian automotive industry to lay down the roadmap for the development of the industry.

Policy Support
Last updated: Dec, 2022

Automobile Clusters

  • Mumbai-Pune-Nashik-Aurangabad
  • Chennai-Bengaluru-Hosur
  • Delhi-Gurgaon-Faridabad
  • Kolkata-Jamshedpur
  • Sanand-Hansalpur-Vithalpur
Agriculture India

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India is expected to become the third largest market for electric vehicles by 2025 at 2.5 million vehicles.

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