Trade Analytics
Automobile
The automobile industry in India is expected to be the world's third largest by 2016.

Automobile Industry Analysis

Latest update: February, 2018

 

 

  • The automotive manufacturing industry comprises the production of commercial vehicles, passenger cars, and three & two-wheelers.
  • Two-wheelers are by far the most popular form of vehicle in India, taking an 80% share in 2015-16.
  • 25 million automobiles produced in FY17.
  • Total production volume grew at a CAGR of 5.56 per cent between FY12-17.

 

 

Source: Society of Indian Automobile Manufacturers (SIAM)

 

 

  • Two-wheelers and passenger vehicles dominate Indian auto market .
  • Two-wheelers and passenger cars accounted for 78 per cent and 15 per cent of production volume in FY17 respectively.
  • Domestic passenger car sales dominated by small and mid-size cars.
  • Over 67 per cent of export volumes comprised of two-wheelers, followed by 22 per cent for passenger cars.

 

 

Source: Society of Indian Automobile Manufacturers (SIAM)

 

Last Updated: February, 2018

The automobile industry in India is world’s fourth largest, with the country currently being the world's seventh largest commercial vehicle manufacturer. Indian automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers dominate the industry and had a 79 per cent share in the automobile production in FY17. Sales of cars, utility vehicles and vans grew 8.85 per cent during calendar year 2017. Automobile exports from India increased 13.01 per cent year-on-year in April-December 2017. Indian automobile industry has received foreign direct investments (FDI) worth US$ 17.91 billion between April 2000 and September 2017.

The passenger vehicle sales in India crossed the three million unit milestone during FY 2016-17, and is further expected increase to 10 million units by FY20.

The government aims to develop India as a global manufacturing as well as a research and development (R&D) hub. It has set up National Automotive Testing and R&D Infrastructure Project (NATRiP) centres as well as a National Automotive Board to act as facilitator between the government and the industry. The Indian government has also set up an ambitious target of having only electric vehicles being sold in the country.

Alternative fuel has the potential to provide for the country's energy demand in the auto sector as the CNG distribution network in India is expected to rise to 250 cities in 2018 from 125 cities in 2014. Also, the luxury car market could register high growth and is expected to reach 150,000 units by 2020.

Sectoral Presentation (February, 2018)

Download PDF   Download  (Size: 1.15 MB )

Posters

Brand India Pharma

REVVING UP

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

+ More >

Brand India Pharma

IBEF Publications

IBEF Publication

India Now Magazine


Rural India

English

+ More Publications >

IBEF Publication

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

author_logo-ibef1.jpg Mid-term review of foreign trade policy: An update
IBEF, Knowledge Centre

The Indian Government announced the mid-term review of Foreign Trade Policy 2015-20 on December 5, 2017. Overall, the policy is expected to make Indian exports more compe...

author_Satish-Kannan1.jpg Internet Proliferation is Making Access to Healthcare Easier
Satish Kannan, Co-founder and CEO, DocsApp

In today's age, it's sometimes easy to forget that the internet is not just for networking and entertainment. It has a purpose and a vast reach; when used correct...

author_logo-ibef1.jpg Auto Expo 2018
IBEF, Knowledge Centre

Held at two separate venues in 2018, the Auto Expo is India’s largest auto gathering. The Auto Expo 2018–Vehicles is scheduled to be held at India Expo Mart, ...

author_Amit_Wadhwani1.jpg 2018 to witness a green revolution in realty and infrastructure
Mr Amit Wadhwani, Director, Sai Estate Consultants

As the Indian real estate and infrastructure sectors look towards a greener future, the investment opportunities are promising and plentiful.In recent years, India has em...

author_logo-ibef1.jpg The Journey From Fragile Five to Favored Investment Destination
IBEF, Knowledge Centre

From being labeled the ‘Fragile Five’(a term coined Morgan Stanley to represent emerging market economies)in 2013 to become one of the most favored investment...

author_logo-ibef1.jpg Current Standing and Growth Potential of India’s Handset Market
IBEF, Knowledge Centre

Smartphones have been taking the world by storm. Look at the mobile phone advertisements and you will know what we are talking about. While earlier mobile phone advertise...

ideas More

Ideas

FUTURISTIC SOLUTIONS, CURRENT SCENARIOS Futuristic Solutions, Current Scenarios
eToilets, the self-flushing, self-monitoring technology-based sanitation solution...

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password