India targets to be among the top three globally in terms of engineering, manufacturing and export of vehicles & auto components
Running in the top gear
With a current annual production of 29 mn vehicles and export of 4 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, India holds a strong position in the international heavy vehicles arena.
The sector attracted USD 17.9 bn FDI between April 2000 and September 2017, contributing 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.
- The sector is expected to grow to 135 bn by 2020 and 300 bn by 2026 at a CAGR of 15%
- The sub-sectors contribution to the overall market (2017-18):
- 2-Wheelers: 81%
- Passenger Vehicles: 13%
- 3-Wheelers: 3%
- Commercial Vehicles: 3%
- 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 Passenger Vehicles and Commercial Vehicles category, are growing rapidly at the rate of 16.2% and 5% respectively
- Share in India's GDP
- Employment generated
- Share in global R&D
- Share in India's total exports
Jump in FDI from 2014 - 2016
Investments in automobile industry over 2000-17
Share in total FDI inflows
May 2018 - JSW Energy plans to double its investment to USD 956.1 mn for its electric vehicle manufacturing unit
March 2018 - MG Motors India is looking to invest USD 735.5 mn in product development, plant, marketing & electric vehicles
March 2018 - Setco Automotive plans to invest approximately USD 35 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 plans to invest USD 625.1 mn in Electric Vehicles in the state of Uttar Pradesh
February 2018 - Suzuki is looking to invest USD 3 bn in India over the next 3 years