India is the world’s 3 rd largest automobile industry and the largest manufacturer of three- wheelers, passenger vehicles, and tractors. It is also the 2 nd largest manufacturer of two- wheelers.
India is home to the world’s largest 2-wheeler market thanks to the following:
• Technology growth
• Middle class population growth
• Younger populationDid you know that?
• India is the largest tractor producer in the world.
• It is the second-largest bus manufacturer.
• And the third-largest heavy truck manufacturer in the world.Market Trends
India’s annual production of automobiles in FY22 was 22.93 million vehicles. In FY23, total passenger vehicle sales reached 3.89 million. In FY23, total automobile exports from India stood at 47,61,487. The share of the automobile industry in national GDP increased from 2.77% in 1992-1993 to around 7.1% presently. The present automobile industry in India employs about 19 million people directly and indirectly.Electric Vehicle Market
The electric vehicle (EV) market is estimated to reach Rs. 50,000 crore (US$ 7.09 billion) in India by 2025. By 2030 there would be a US$ 206 billion opportunity for electric vehicles in India. And this might need a whopping US$ 180 billion investment in vehicle manufacturing and charging infrastructure. India is vying to become the world’s largest Electric vehicle manufacturer in a couple of year or so.Industry Investments
The automobile industry in India attracted Foreign Direct Investment equity inflow (FDI) worth US$ 34.11 billion for 2022-2023. The Government of India expects the automobile sector to attract US$ 8-10 billion in local and foreign investments by this financial year.Industry Forecast
The automobile industry is set to attract US$ 8-10 billion in local and foreign investments in the current financial year. India could be a leader in shared mobility by 2030, providing opportunities for electric and autonomous vehicles.
INDIAN AUTOMobile INDUSTRY AT A Glance IN 2017 - 2018