Low-cost electrical Vehicle
The Government's vision of 100% electrical mobility by 2030.
Snapshot
Running in the top gear
India is expected to be the world's third-largest automotive market in terms of volume by 2026.
The industry currently manufactures 25 mn vehicles, of which 3.5 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.
The sector attracted $ 17.9 bn FDI between April 2000 and September 2017; accounting for 5% of the total FDI inflows.
100% FDI allowed under automatic route
For further details, please refer FDI Policy
7 %
Share in India's GDP
19 mn
Employment generated
40 %
Share in global R&D
4.3 %
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
Industry Scenario
The $ 74 bn Automobile industry is expected to reach $ 300 bn by 2026.
The industry is expected to reach 135 bn by 2020 and 300 bn by 2026 at a CAGR of 15%.
The sub-sectors contribution to the overall market in 2017-18:
- Two-Wheeler: 81%
- Passenger vehicles: 13%
- Three-Wheeler: 3%
- Commercial vehicles: 3%
India's rapidly growing five auto hubs have a significant potential to be used as a base for export to South East Asia (SEA) and Middle East and North African (MENA) regions.
In April-March 2018, overall automobile exports increased by 16.12%. Two and Three Wheeler Segments registered a growth of 20.29% and 40.13% respectively.
Growth Drivers
Growing income
3X increase in average household income from $ 6,393 in 2010 to $ 18,448 in 2020'Youngest Nation' by 2025
India to become the youngest nation by 2025 with an average age of 25 yearsVehicle penetration
Expected to reach 72 vehicles per 1000 people by 2025Expanding R&D hub
India accounts for 40% of total $ 31 bn of global engineering and R&D spend
Recent Announcements
Maruti Suzuki India has invested INR 4 cr to establish a Center of Excellence at ITI, Becharaji, Gujarat to provide technical skill development to the students. Spread over 11,800 sq ft is equipped with Maruti Suzuki Basic Training lab, Safety Simulation hop, and Finishing schools for Weld shop among other workshops and has a capacity for 150 trainees.
South Korean Hyundai Motor Company and Kia Motors Corporation will invest $ 300 mn in ride hailing platform Ola to build unique fleet and mobility solutions as well as building India specific EV and infrastructure.
Mahindra Electric Mobility opened its electric technology manufacturing hub set up with an investment of INR 100 crore in Bengaluru.
Hyundai Motor India Limited (HMIL) will be making an investment of INR 7,000 crore at its Chennai plant — for increasing production capacity by 100,000 units per annum as well making 10 new models between now and 2025, including electric vehicles.
Amara Raja Batteries setting up $ 94.7 mn plant
Honda to invest $ 1,244.2 mn, largest for India car business
MG Motors India is looking to invest $ 735.5 mn in product development, plant, marketing & electric vehicles
Voluntary Vehicle Fleet Modernization Programme (V-VMP)
Offers tax benefits and discounts on replacing old vehicles with new ones
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 Indian Automobile industry.
Investible Projects
Investment Opportunities in Automobile
-
Projects
2
-
Opportunity
$712.4 mn
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Promoters
2
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District
2
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Private Projects
1
-
Govt. Projects
1
Major Investors
Data on Map
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FAQ
Frequently
Asked Questions
Since the subsidy is only on a reimbursement basis, can we claim the amount from DHI and then pass it to customers?
No, as per scheme guidelines, incentive will be on reimbursement basis only after submission of claim. This claim required to be submitted only after sale of vehicles.
For more information, please visit the following link.
Which electric vehicles categories are not covered under this FAME scheme?
The following categories are not covered under the FAME scheme:
a) E-Rikshaw
b) Electric Bicycles.
c) Vehicles used for carrying person/goods used within closed premises like factory, airport etc.
d) Electric Chair-cars.
All those vehicles, which are not directly reducing fossil fuel, are not covered under FAME India Scheme.For more information, please visit the following link.
Are Electric and Hybrid Vehicles available in the market are safe to drive?
Demand incentive under FAME India scheme is available only to vehicles that are regulated by the Central Motor Vehicle Rules (CMVR) and meet other qualifying criteria laid out in the FAME scheme. As such these vehicles meet all the safety regulations as applicable in the country.
For more information, please visit the following link.
Is it necessary to sold sell old gasoline based vehicles to get subsidy under FAME India Scheme?
No, there is no such condition in the present guidelines.
For more information, please visit the following link.
It is said that Electric Vehicles (EV) are also called as Emission Elsewhere Vehicle (EEV). Is it true that EVs are just transferring emission from city area to the place where power is being generated?
The fact is that a typical conventional hatchback has 130-140 gm/km of CO2 emission comparing to an electric vehicle for 100 gm/km when charged by grid and when solar charged, there is ~0 gm/km CO2 emission from an electric vehicle.
Please visit the link for more information.
