Targets India to be among the top three in the world for engineering, manufacturing and export of vehicles & auto components
Running in the top gear
With a current annual production of 25 mn vehicles and export of 3.5 mn, the Indian auto industry is expected to be the world's third-largest automotive market by volume by 2026.
As the largest tractor manufacturer, second largest bus manufacturer and third largest heavy trucks manufacturer globally, the country holds a strong position in the international heavy vehicles arena.
The sector has attracted USD 17.9 bn FDI from April 2000 to September 2017; contributing to 5% of the total FDI inflows.
100% FDI allowed under automatic route
For more details refer FDI Policy 2017
- World's largest tractor manufacturer
- World’s second largest two-wheeler market
- World’s third largest heavy truck manufacturer
Known as the Sunrise sector of India, the USD 74 bn auto industry is expected to grow to USD 300 bn by 2026.
- Expected to grow to 135 bn by 2020 and 300 bn by 2026 at a CAGR of 15%
- The sub-sectors contributing to the growth include:
- Passenger Vehicles (market share of 14%): Growing at 9.2%
- 2-Wheelers (market share of 80%): Growing at 6.9%
- Commercial Vehicles (market share of 14%): Growing at 4.2%
- India's rapidly growing 5 auto hubs have a significant potential to be used as a base for export to SEA and MENA regions.
- Exports in the Sub-sectors of Passenger Vehicles and Commercial Vehicles, growing rapidly at the rate of 16.2% and 5% respectively
- Share in India's GDP
- Employment generated
- Share of global R&D
- Share in India's total exports
Jump in FDI from 2014 - 2016
Sectoral investments (in USD) for automobile industry from April 2000 - June 2017
Share of total FDI inflows
June 2017 - Chinese car maker SAIC to commence India operations in 2019.
April 2017 - Kia Motors to set up a USD 1 bn car plant in Andhra Pradesh
January 2017 - Peugeot to enter India by 2020 in JV with CK Birla Group
November 2016 - Ford to invest USD 195 mn on new technology facility in Chennai