India produced 2.7 billion automobiles in FY23, with a value of US$ 108 billion: Report
- IBEF
- June 30, 2023
According to a report by Primus Partners, the Indian auto industry produced a staggering 2.7 crore vehicles in all segments and types in FY23, with the passenger vehicle segment accounting for 57% of the total value at US$ 60.92 billion (Rs. 5 lakh crore). The commercial vehicle segment, which includes small four-wheel carriers with less than two-tonne capacity to large tractor trailers and speciality vehicles like tippers, contributed 10 lakh vehicles, worth US$ 20.71 billion (Rs. 1.7 lakh crore), to the total 2.7 lakh crore vehicles produced in the previous fiscal year. The Commercial Vehicle (CV) segment accounted for 4% of the total volume and 19% in value terms.
The production of two-wheelers is closely matched by China, with 20 million two-wheelers coming out of the manufacturing facilities in the country, accounting for 77% of the volume share. The overall segment accounted for US$ 21.93 billion (Rs. 1.8 lakh crore) amounting to 21% of value. It also said that the number of people employed by the industry during the period was 1.9 crore.
Furthermore, the report also stated that the mid-size and full-size sports utility vehicle (SUV) sub-segments within the passenger vehicle segment accounted for over half of the value. The compact sub-segment is also important and created 25% of the value and added that the luxury segment vehicles contributed to US$ 7.67 billion (Rs. 63,000 crore) in value or 13% of the segment.
It also quoted that a large part of the electrification in India has happened in two-wheeler and three-wheeler segments. While the Indian electric vehicles (EV) Industry is trailing behind top countries like China, the US, and the EU, massive investments have taken place in India, which strongly indicates that the country is poised to significantly increase its EV segment in the next few years.
The automobile industry in India is on the cusp of unprecedented changes, with multiple factors reshaping the landscape. Factors such as electrification/alternate green power, rise in the use of electronic components, autonomous changes (such as self-driven cars) and shared vehicle rentals/cab services, among others, are driving the transformation of the Indian automobile industry.
The managing Director, Primus Partners, Mr. Anurag Singh quoted that a ground-up study on automobile industry value is leading to a lot of insights, for example, the Indian market is bypassing the lower priced products and more value is being created in feature-rich higher priced vehicles.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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