Leading global automotive manufacturing hub

The growing presence of global automobile Original Equipment Manufacturers (OEMs) in the Indian auto components industry has significantly increased the localization of their components in the country.

The FDI inflow into Indian automotive industry during the period April 2000-March 2021 stood at $25.85 bn

100% FDI in the automotive parts industry is 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

The $49 bn (FY20)  Auto Components industry in India is expected to grow to $200 bn by 2026.

Indian Auto Component industry exports, which are currently valued at $14.5bn in FY20, are 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 $9.8 bn currently.

The overall Indian auto components industry, which accounts for 2.3% of India's GDP currently, is set to become the 3rd largest globally by 2025.


  • Expanding R&D hub

    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

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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. 

For more information, click here


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What is National Electric Mobility Mission Plan (NEMMP) 2020?

The National Electric Mobility Mission Plan 2020 (NEMMP 2020) is intended to provide the future roadmap, establish a common set of priorities, broad principles and framework for the adoption of the full range of electric mobility solutions. The initiative aims at enhancing national fuel security, provide affordable and environment-friendly transportation and enable the Indian Automotive Industry to achieve global manufacturing leadership.

For more information, click here

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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.

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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. 

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