Snapshot
Leading global automotive manufacturing hub
The growing presence of global automobile Original Equipment Manufacturers (OEMs) in the Indian manufacturing landscape has significantly increased the localization of their components in the country. India has become the preferred designing and manufacturing base for most global auto OEMs for local sourcing and exports.
100% FDI allowed under the automatic route.
For further details, please refer FDI Policy
- %
Share in India's GDP
- mn
Employment generated
- %
CAGR (over 6 years)
- mn +
Hybrid and electric vehicles sale

The rapidly growing auto market in India is expected to reach $ 300 bn by 2026

Automotive aftermarket segment in India is expected to reach $ 32 bn by 2026

Auto Components industry exports to grow 5X in next 10 years
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
The $57 bn Auto Components industry in India is expected to grow to $200 bn by 2026.
Auto Components industry exports, which is currently valued at $15.2 bn, is expected to grow at an annual rate of 23.9% to reach $80 bn by 2026. USA, Germany, UK, Thailand and Italy are the top destinations for exports.
Aftermarket segment which includes tyre, battery, brake parts, is expected to reach $32 bn by 2026 from $10.1 bn currently.
The overall industry which accounts for 2.3% of India's GDP currently, is set to become the 3rd largest in the world by 2025.
GROWTH DRIVERS
Expanding R&D hub
India accounted for 40% of global engineering and R&D activities. 8% of the country’s R&D expenditure is in the automotive sector.
Emerging global sourcing hub
Proximity to markets such as ASEAN, Europe, Japan and Korea
Cost competitive
Excise duty reduction in vehicles will spur demand
Sixth largest vehicles manufacturer in the world
India expected to be the third largest market by 2026
Favorable trade policy
100% FDI allowed and no restrictions on import-export
Atmanirbhar Bharat
PLI schemes in automobile and auto component sector with financial outlay of INR 57,042 crores introduced under Atmanirbhar Bharat 3.0


Production Linked Incentive (PLI) Scheme
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in the Automobile and Auto Components sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.
INR 57,042 cr
Scheme Outlay
