Envisions to develop India as one of the top 3 automobile manufacturing, engineering and export hubs in the world with a turnover of $300 bn, generate 65 mn direct & indirect jobs and contribute 12% of India's GDP by 2026
Leading Global Automotive Manufacturing Hub
The growing presence of global automobile Original Equipment Manufacturers (OEMs) in the Indian manufacturing landscape has significantly increased the localisation of their components in the country. India has become the preferred designing and manufacturing base for most global Auto OEM's for local sourcing and exports.
100% FDI allowed under automatic route
for more details refer FDI Policy 2017
- Rapidly growing Indian auto market to touch USD 300 bn by 2026
- Exports to grow 5X by 2026
- Indian Auto Components aftermarket segment expected to reach USD 32 bn by 2026
The USD 43.5 bn Indian auto component industry is expected to grow to USD 200 bn by 2026.
The local industry is growing at the rapid rate of 14.3% in tandem with the parent OEM industry. Two biggest consumer segments are the Passenger Vehicles and 2 Wheelers.
Exports valued at USD 10.9 bn; growing at the YoY rate of 3.1% to reach USD 80 bn by 2026. Top 5 countries of Export include: - USA, Germany, Turkey, UK, Italy.
One of the biggest components of this industry is the aftermarket segment which is valued at USD 8.4 bn which is expected to reach USD 32 bn by 2026.
- India's GDP contribution
- Employment generated
- Transmission, Steering parts % share
- Hybrid & electric vehicles sale (by 2020)
6 mn plus
Share of total FDI inflows
Jump in the auto sector FDI from 2014-2016
FDI allowed in the sector
September 2017 - Hella India Automotive to set up second manufacturing facility in Gujarat; plans new products for hybrids and EVs in India
September 2017 - Suzuki, Toshiba, Denso to jointly produce EV batteries in India
August 2017 - Bridgestone to invest USD 304 mn over 5 years to expand India plants.
March 2017 - Motherson Sumi Systems Ltd, an automobile components manufacturer, has acquired Finland-based truck wire maker PKC Group Pic for USD 609.5 mn, which will help the company expand its presence in the global wiring harness business for commercial vehicles.