India is set to become a leader in the Two Wheeler and Four Wheeler market in the world by the year 2020.The automobile industry in India is expected to be the world's third largest by 2016, with the country currently the world's second largest two-wheeler manufacturer. Two-wheeler production is projected to rise from 16.9 million in FY14 to 28.8 million by FY21.
Passenger vehicle production is expected to increase to 10 million in FY21 from 3.1 million in FY14. Automobile export volumes increased at a compound annual growth rate (CAGR) of 17.5 per cent during FY 2014, out of which two-wheelers accounted for the largest share in exports at 67 per cent.
Also, the luxury car market could register high growth and is expected to reach 150,000 units by the year 2020.