Low-cost electrical vehicle
The Government’s vision of 100% electric mobility by 2030
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 automatic route
For further details, please refer FDI Policy
2.3%
Share in India's GDP
3 mn
Employment generated
18.3%
Industry growth rate
1 mn +
Hybrid & 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
The $ 51.2 bn Auto Components industry in India is expected to grow to $ 200 bn by 2026.
Auto Components industry exports, which is currently valued at $ 13.5 bn, is expected to grow at an annual rate of 23.9% to reach $ 80 bn by 2026. USA, Germany, Turkey, UK, 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 $ 9.2 bn currently.
Growth Drivers
Expanding R&D hub
India accounted for 40% of global engineering and R&D activities
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
Recent Announcements
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.
Setco Automotive, the homegrown clutch manufacturer for commercial vehicles, is planning to invest $ 30-38 mn in 2-3 years in capacity expansion and plant modernization.
Voluntary Vehicle Fleet Modernization Programme (V-VMP)
Incentivising buyers of new commercial vehicles
Bharat Stage VI norms by 2020
India aims to reduce its carbon footprint by 33-35% by 2030
Positive GST impact
Reduction in the overall cost structure of the auto industry in India
Investible Projects
Investment Opportunities in Auto Components
-
Projects
8
-
Opportunity
$942.5 mn
-
Promoters
8
-
District
7
-
Private Projects
6
-
Govt. Projects
2
Major Investors
Data on Map
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FAQ
Frequently
Asked Questions
What is National Automotive Board (NAB)?
National Automotive Board provides a single platform for dealing with all matters relating to the automotive sector especially on matters pertaining to testing, certification, homologation, administering the automotive labs etc. being setup under NATRIP. The constitution of NAB, filling up of posts etc. is in progress.
For more details, link.
What is National Electric Mobility Mission Plan (NEMMP) 2020?
The National Electric Mobility Mission Plan 2020 is one of the most important and ambitious initiatives undertaken by the Government of India that has the potential to bring about a transformational paradigm shift in the automotive and transportation industry in the country.
What is NATrIPs (National Automotive Testing and R&D Infrastructure Project)?
NATrIPs is a unique joining of hands between the Government of India, a number of State Governments and Indian Automotive Industry to create a state of the art Testing, Validation and R&D infrastructure in the country. Presently there are 7 testing facilities finalised. They are:
a) GARC Chennai, Tamil Nadu.
b) iCAT Manesar, Haryana.
c) NATRAX Indore, Madhya Pradesh.
d) NCVRS Rae Bareli, Uttar Pradesh.
e) NIAMIT Silchar, Assam.
f) VRDE Ahmednagar, Gujarat.
g) ARAI Pune, Maharashtra.What is Automotive Mission Plan (AMP) 2016-2026?
Automotive mission plan 2016-2026 targets India to be among the top three in the world for engineering, manufacturing and export of vehicles & auto components. You can find more details about achievements, vision and targets on the portal, link.
