Automobile Industry in India

By 2030, the Indian government has committed that 30% of the new vehicle sales in India would be electric.

Advantage India

Growing
Demand

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

* In September 2024, the total production of passenger vehicles*, three-wheelers, two-wheelers, and quadricycles was 27,73,039 units.

* The global EV market was estimated at approximately US$ 250 billion in 2021 and by 2028, it is projected to grow by 5 times to US$ 1,318 billion.

* In April 2024, the total production of passenger vehicles*, three-wheelers, two-wheelers, and quadricycles was 23,58,041 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.

* By 2030, the Indian government has committed that 30% of the new vehicle sales in India would be electric.

Opportunities

Rising
Investment

* The automobile sector received a cumulative equity FDI inflow of about US$ 35.40 billion between April 2000 - September 2023.

* India is on track to become the largest EV market by 2030, with a total investment opportunity of more than US$ 200 billion over the next 8-10 years.

* The automobile sector received a cumulative equity FDI inflow of about US$ 35.65 billion between April 2000 - December 2023.

* The automobile sector received a cumulative equity FDI inflow of about US$ 36.268 billion between April 2000 - March 2024.

Rising Investment

Policy
Support

* The Centre has launched the PM E-DRIVE scheme with a budget of US$ 1.30 billion (Rs. 10,900 crore), effective from October 1, 2024, to March 31, 2026. The initiative aims to accelerate the adoption of Electric Vehicles (EVs), establish charging infrastructure, and develop an EV manufacturing ecosystem in India.

* The FAME Scheme was extended for a further period of 2 years up to March 31st, 2024.

Policy Support
Last updated: Jan, 2025

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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