The used cars market is also anticipated to grow at a compound annual growth rate (CAGR) of 16 per cent during 2013-17, according to an RNCOS report. The US-based motorbike maker Harley Davidson, Austrian motorcycle manufacturer KTM and Mahindra & Mahindra have also preferred to set up manufacturing facilities in India which is a boon to the Indian Automobile Industry.
India is also set to become Mercedes Benz's fastest-growing market worldwide ahead of China, the US and Europe. The passenger vehicles production in India touched 3.23 million units in 2012-13 and is expected to reach 10 million units by 2020-21.
The industry is estimated to grow at a CAGR of 13 per cent during 2012-2021. In addition, the industry recorded exports worth US$ 9.3 billion in 2012-13 and is projected to touch US$ 30 billion by 2020-21, according to Automotive Component Manufacturers Association (ACMA).The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry during April 2000 to October 2013 was recorded at US$ 9,079 million, amounting to 4 per cent of the total FDI inflows.