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 March 2023, the total production of passenger vehicles*, three-wheelers, two-wheelers, and quadricycles was 20,04,592 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

* The automobile sector received cumulative equity FDI inflow of about US$ 34.11 billion between April 2000-December 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: Aug, 2023

Automobile Clusters

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

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