Automobile Industry in India

India is the world’s third-largest automobile market, the largest manufacturer of three-wheelers, passenger vehicles, and tractors, and the second-largest manufacturer of two-wheelers.

Advantage India

Growing
Demand

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

* In January 2024, the total production of passenger vehicles*, three-wheelers, two-wheelers, and quadricycles was 23,28,329 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.

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

* 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.

Rising Investment

Policy
Support

* 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.

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

Policy Support
Last updated: May, 2024

Automobile Clusters

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

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REVVING UP

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

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