Targets India to be among the top three in the world for engineering, manufacturing and export of vehicles & auto components
Running in the top gear
With a current annual production of 25 mn vehicles and export of 3.5 mn, the Indian auto industry is expected to be the world's third-largest automotive market by volume by 2026.
As the largest tractor manufacturer, second largest bus manufacturer and third largest heavy trucks manufacturer globally, the country holds a strong position in the international heavy vehicles arena.
The sector has attracted USD 17.9 bn FDI from April 2000 to September 2017; contributing to 5% of the total FDI inflows.
100% FDI allowed under automatic route
For more details refer FDI Policy 2017
- World's largest tractor manufacturer
- World’s second largest two-wheeler market
- World’s third largest heavy truck manufacturer and fourth largest car producer
Known as the Sunrise sector of India, the USD 74 bn auto industry is expected to grow to USD 300 bn by 2026.
- Expected to grow to 135 bn by 2020 and 300 bn by 2026 at a CAGR of 15%
- The sub-sectors contributing to the growth include:
- Passenger Vehicles (market share of 14%): Growing at 9.2%
- 2-Wheelers (market share of 80%): Growing at 6.9%
- Commercial Vehicles (market share of 14%): Growing at 4.2%
- India's rapidly growing 5 auto hubs have a significant potential to be used as a base for export to SEA and MENA regions.
- Exports in the Sub-sectors of Passenger Vehicles and Commercial Vehicles, growing rapidly at the rate of 16.2% and 5% respectively
- Share in India's GDP
- Employment generated
- Share of global R&D
- Share in India's total exports
Jump in FDI from 2014 - 2016
Sectoral investments (in USD) for automobile industry from April 2000 - December 2017
Share of total FDI inflows
May 2018 - JSW Energy almost doubles capex plan for EV arm to USD 956.1 mn
March 2018 - MG Motors India will invest USD 735.5 mn in product development, plant, marketing & electric vehicles
March 2018 - Setco Automotive is investing USD 29.4 mn to USD 36.8 mn in capacity expansion and plant modernization
March 2018 - Maxxis Tyres launches first Indian plant at an investment of USD 388.3 mn
February 2018 - Essel Infraprojects will invest USD 625.1 mn in Electric Vehicles in the state of Uttar Pradesh
February 2018 - Suzuki to invest USD 3 bn in India over the next 3 years