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.
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.
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.
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.
Maruti Suzuki
Maruti Suzuki India Limited, subsidiary of Suzuki Motor Corporation, Japan, is India’s biggest car maker with more than 43.94% market share in the passenger vehicles segment in January 2024. The company recorded passenger vehicle sales of 1,72,813 units in January 2024.
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Tata Motors
Tata Motors was established in 1945 under the Tata Group. It is among the world’s leading manufacturers of automobiles with an employee strength of around 81,090. It is present in multiple segments like cars and utility vehicles, trucks and buses, defence vehicles, and electric vehicles. The company has extended its presence internationally through Joint Ventures (JV) like the strategic alliance with Fiat and Marcopolo. Tata Motors is present in about 175 countries with Research and Development (R&D) centres in UK, Italy, India, and South Korea. Tata Motors sold 31,188 commercial vehicles in January 2024.
Read MoreHero MotoCorp Limited
Hero MotoCorp Limited (formally Hero Honda Motors Limited) is the world’s largest manufacturer of two-wheelers. It is present in South Asia, Africa, the Middle East, and Latin America. Hero MotoCorp was the first Indian two-wheeler company to establish a manufacturing plant in Latin America. Its key products include two-wheelers up to 350cc and spare parts.
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