The Department of Heavy Industries, Government of India, deals with areas related to vehicles and automotive parts. Entire Automotive industry falls under the concern of Heavy Industries Department.
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The industry currently manufactures 26 mn vehicles, of which 4.7 mn are exported. India holds a strong position in the international heavy vehicles arena as it is the largest tractor manufacturer, second-largest bus manufacturer and third largest heavy trucks manufacturer in the world.
In April-March 2020, overall automobile exports registered a growth of 2.95 %. Passenger Vehicles exports marginally increased by 0.17 % and Two wheelers exports registered a growth of 7.30 % in April-March 2020 over the same period last year.
The sector attracted $24.2 bn FDI during April 2000 - March 2020; accounting for 5.1% of the total FDI inflows.
100% FDI allowed under automatic route
For further details, please refer FDI Policy
Share in India's GDP
Share in global R&D
Share in India's exports
World's largest tractor manufacturer and second largest bus manufacturer
World’s largest two-wheeler and three-wheeler manufacturer
World’s third largest heavy truck manufacturer and fourth largest car manufacturer
India's annual production has been 29.08 mn vehicles in 2018 as against 25.33 mn in 2017, registering a healthy growth of 14.8%.
India is expected to emerge as the world’s third-largest passenger vehicle market by 2021. In FY 2018-19, sale of passenger vehicles has increased by 2.70%, two-wheeler by 4.86% and three-wheeler by 10.27% as compared to FY 2017-18.
In April-March 2019, overall automobile exports grew by 14.50%. The overall Commercial Vehicles segment registered a growth of 17.55% in April- March 2019.
3X increase in average household income from $6,393 in 2010 to $18,448 in 2020
India to become the youngest nation by 2025 with an average age of 25 years
Expected to reach 72 vehicles per 1000 people by 2025
India accounts for 40% of total $31 bn of global engineering and R&D spend. 8% of the country’s R&D expenditure is in the automotive sector.
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