Envisions to develop India as one of the top 3 automobile manufacturing, engineering and export hubs in the world with a turnover of USD 300 bn. Moreover, the plan aims to generate 65 mn direct & indirect jobs and contribute 12% to 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 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 automatic route
for more details refer FDI Policy 2017
- Rapidly growing Indian auto market expected to touch USD 300 bn by 2026
- Auto components exports to grow 5 times in next ten years
- Indian automotive 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.
Auto components exports, currently valued at USD 10.9 bn, is expected to grow at an annual rate of 3.1% to reach USD 80 bn by 2026. USA, Germany, Turkey, UK, and Italy are the top destinations for exports.
Aftermarket segment which includes tyre, battery, brake parts, etc is expected to reach USD 32 bn by 2026 from USD 8.4 bn currently.
- Contribution to GDP
- Employment generated
- Share of Transmission, Steering parts
- Hybrid & electric vehicles sale (by 2020)
6 mn plus
Share in total FDI inflows
Jump in the auto sector FDI from 2014-2016
FDI allowed in the sector
April 2018 – Hong Kong-listed Nexteer Automotive is planning to set up a plant in Chennai, Tamil Nadu for manufacturing of electronic power steering which is expected to be functional towards the end of 2018.
March 2018 – Setco Automotive, the home grown clutch manufacturer for commercial vehicles, is planning to invest USD 30-38 mn in 2-3 years in capacity expansion and plant modernization.
February 2018 - Auto maker Mahindra and Mahindra tied up with Korea-based battery manufacturer LG Chem for development of a unique cell exclusively for India.
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.