The automobile Industry in India is considered one of the most important economic sectors in terms of revenue. It comprises a wide range of companies and organizations involved in designing and developing motor vehicles. It is also one of the most important drivers of the economic growth of India and also one with high participation in global value chains. One of the reasons behind the growth of the automobile industry is the strong government support which has helped it carve a unique path among the manufacturing sectors in India. The automobile industry plays an important role in the Indian economy in terms of contribution to 49% of India’s manufacturing GDP, revenue generation through its robust sales and generating various sources of employment for the development of the nation. It also supports the growth of other sectors through the acquisition of raw materials.

Automobile production in India uniquely caters to the demand of a lower and middle-income group of the population which makes the sector stand out in India among the other automobile-producing countries. The auto industry directly supports over 8 million jobs and as many as 30 million more in the value chain. As of 2022, India was recognised as the 3rd largest automobile market in the world in terms of sales.

The first car ran on Indian roads back then in 1897. Also, through the period of the 1930s, cars were imported in small numbers. Midway through the 1940s, Hindustan Motors and Premier began producing Chrysler, Dodge, and Fiat vehicles, leading to a revolution. In 1945, Mahindra & Mahindra (M&M) and Tata Motors were founded. M&M produced the Jeep, an Indian-built utility vehicle for the armed forces.

Digitization and new business models have contributed to huge growth and revolution in all sectors including automotive. Within the automotive sectors, the forces of digitization are giving rise to four disruptive technology-driven trends: diverse mobility, autonomous driving, electrification, and connectivity.

The Indian automobile industry mainly comprises the automobile and automotive segments, which is one of the key drivers of the economic growth of India. It is also one of the major drivers of the manufacturing gross domestic product (GDP), exports, and employment since the automobile industry is deeply integrated with other industrial sectors. A variety of conventional variables, such as India's strengths in casting, forging, and precision machinery, fabrication and cost advantages, and sizeable inflows of foreign direct investment support the growth of the automobile industry in the nation. India is one of the leading countries in the world in terms of vehicle production, accounting for 22.9 million units of production volume of vehicles in the financial year 2022.

• The automobile industry accounts for 7.1% of India’s GDP (in 2022) and 49% of its manufacturing GDP.
• India is the world’s largest two-wheeler and three-wheeler manufacturer.
• It is the world’s second-largest tractor and bus manufacturer.
• It is the world’s largest heavy truck manufacturer and fourth largest car manufacturer.