India became the fourth largest auto market in 2019 with sales increasing 8.3 per cent year-on-year to 3.99 million units. It was the seventh largest manufacturer of commercial vehicles in 2019.
Automobile exports grew 14.50 per cent during FY19 in India. It is expected to grow at a CAGR of 3.05 per cent during 2016-2026. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the two-wheeler and four-wheeler market in the world by 2020.
Electric vehicles sales, excluding e-rickshaws, in India witnessed a growth by 20 per cent to reach 1.56 lakh units in 2019-20 driven by two-wheelers.
Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13-19 with 26.27 million vehicles getting sold in FY19. Domestic automobile production increased at 6.96 per cent CAGR between FY13-19 with 30.92 million vehicles manufactured in the country in FY19.
In FY19, year-on-year growth in domestic sales among all the categories was recorded in commercial vehicles at 17.55 per cent followed by 10.27 per cent year-on-year growth in the sales of three-wheelers.
Automobile exports grew 14.50 per cent year-on-year during FY19, while during April-December 2019, overall export increased by 3.9 per cent.
Premium motorbike sales in India recorded seven-fold jump in domestic sales reaching 13,982 units during April-September 2019. The sale of luxury cars stood between 15,000 to 17,000 in first six months of 2019.
Investments in the Industry
The Indian Automobile industry has attracted Foreign Direct Investment (FDI) worth US$ 23.89 billion during the period April 2000 to December 2019, according to data released by Department for Promotion of Industry and Internal Trade (DPIIT).
INDIAN AUTOMobile INDUSTRY AT A Glance IN 2016 - 2017