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 26 mn vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers and Quadricycles in April-March 2020, 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.
- The EV market is expected to grow at CAGR of 44% between 2020-2027 and is expected to hit 6.34 million-unit annual sales by 2027. The EV industry will create five crore direct and indirect jobs by 2030.
- A market size of $50 bn for the financing of EVs in 2030 has been identified—about 80% of the current size of India’s retail vehicle finance industry, worth $60 bn today
- In April-March 2020, overall automobile exports registered a growth of 2.95%.
- Passenger vehicles exports marginally increased by 0.17% and two-wheeler exports registered a growth of 7.30% in April-March 2020 over the same period last year.
- India's passenger vehicle industry is expected to post a growth of 22% - 25% in FY22
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
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
The $118 bn Automobile industry is expected to reach $300 bn by 2026.
India's annual production has been 30.91 mn vehicles in 2019 as against 29.08 mn in 2018, registering a healthy growth of 6.26%
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
'Youngest Nation' by 2025
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
Expanding R&D hub
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.
Atmanirbhar Bharat Abhiyaan - Self Reliant India
Special economic and comprehensive package of INR 20 lakh crores towards promoting manufacturing in India
Production-Linked Incentive (PLI) Scheme
Automobile sector have a financial outlay of INR 51,000 cr under Atmanirbhar Bharat package