As of 2023, India is the third largest automobile market in the world in terms of sales. The automotive industry in India is the 4th largest by production in the world as per 2021 statistics. In 2022, India became fourth largest country in the world by valuation of automotive industry.
As of April 2022, India’s auto industry is worth of more than US$100 billion and contributes 8% of the country’s total export and accounts for 7.1% of India’s GDP. India’s major automobile manufacturing companies includes Maruti Suzuki, Hyundai Motor India, Tata Motors, Ashok Leyland, Mahindra & Mahindra, Force Motors, Tractors and Farm Equipment Limited, Eicher Motors, Royal Enfield, Sonalika Tractors, Hindustan Motors, ICML, Kerala Automobiles Limited, Reva, Premier.
Currently, the automobile industry contributes 7.1% of India’s GDP and 49% of its manufacturing GDP.
The EV market is expected to grow at CAGR of 49% between 2022-2030 and is expected to hit 10 Mn-unit annual sales by 2030. The EV industry will create 50 Mn direct and indirect jobs by 2030.
A market size of $50 Bn for the financing of EVs in 2030 has been identified—about 80% of the current size of India’s retail vehicle finance industry, worth $60 Bn today.
India’s trucking market is expected to grow over 4x by 2050. The number of trucks is expected to more than quadruple, from 4 Mn in 2022 to roughly 17 Mn trucks by 2050.
India’s Automotive Industry is worth more than $222 Bn and contributes 8% of the country’s total export and accounts for 7.1% of India’s GDP and is set to become the 3rd largest in the world by 2030.
Why to Invest in India’s Automobile Industry
World’s largest two-wheeler and three-wheeler manufacturer
World’s second largest tractor and bus manufacturer
World’s third largest heavy truck manufacturer and fourth largest car manufacturer
Industry Scenario
The $222 Bn Automobile industry is expected to reach $300 Bn by 2026.
In the Automobile market in India, Two-wheelers and passenger cars accounted for 76% and 17.4% market share, respectively. Passenger car sales are dominated by small and midsized cars.
Export of total number of automobiles increased from 4,134,047 in 2020-21 to 5,617,246 in 2021-22, registering a positive growth of 35.9%.
India aims to double auto industry size to INR 15 lakh Cr by 2024 end.
In April 2021 to March 2022, Passenger Vehicle Exports increased from 404,397 to 577,875 units (registering a positive growth of 42.9%), Commercial Vehicle Exports increased from 50,334 to 92,297 units, Three-Wheeler Exports increased from 393,001 to 499,730 units and Two-Wheeler Exports increased from 3,282,786 to 4,443,018 units in April 2021 to March 2022 over same period last year.
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