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
Employment generated
Industry growth rate
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
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.
India accounted for 40% of global engineering and R&D activities. 8% of the country’s R&D expenditure is in the automotive sector.
Proximity to markets such as ASEAN, Europe, Japan and Korea
Excise duty reduction in vehicles will spur demand
India expected to be the third largest market by 2026
100% FDI allowed and no restrictions on import-export
10 February,03:15 PM
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