India Automotive Industry Market Overview:
India Automotive Industry Market Size was valued at USD 100.5 Billion in 2022. The Global India Automotive Industry is projected to grow from USD 109.3 Billion in 2023 to USD 214.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.80% during the forecast period (2023 - 2032). Market drivers contributing to the market's expansion include the expanding middle class, technological advancements in the automotive sector, and government programs and laws that facilitate the establishment of the automotive sector.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
India Automotive Industry Market Trends
Increasing demand for cars is driving the market growth
In India, the automobile industry contributes 7.1% of the country's GDP and 49% of the manufacturing GDP. As a result, India's car industry plays a big role in both macroeconomic expansion and technological improvement. Therefore, the government's main goal is to increase the automobile industry's share by enacting new laws and programs. The Indian government anticipates that 8–10 billion USD in local and foreign investment will reach the automotive sector by 2023. For instance, as part of a larger series of nation-building initiatives, the Prime Minister unveiled the Made in India program in 2014. The goal of Make in India was to turn India into a powerhouse for global design and manufacturing in response to a critical situation. In order to meet the growing demand for automobile production in the nation, numerous manufacturers are investing in both new and existing plants. Furthermore, the Indian government unveiled a new car scrappage strategy in 2021, with the main goal being to locate and remove unsafe cars from the road. This reduces the amount of greenhouse gases that the older cars emit and makes room for the new car that complies with BS6 (Bharat Stage 6 - equivalent to Euro6) emission standards. This will boost the market CAGR.
Around 300,000 electric cars were sold in India in 2021—a 168% increase over the 100,000 units sold the year before. Sales of passenger EVs in India tripled to approximately 15,000 units in 2021, and they are still exhibiting growth.In response to increasing urbanization, the Indian government has launched various programs to encourage the production and use of electric vehicles domestically. The goal is to lower emissions and advance e-mobility.The Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME I and II) and the National Electric Mobility Mission Plan (NEMMP) also contributed to generating the early interest in and exposure to electric mobility. Furthermore, to support the indigenous electric vehicle industry, the Indian government has also given tax breaks and subsidies to EV producers and users. The government has put a 15% customs tariff on parts used to make electric vehicles and a 10% duty on imported lithium-ion cells in accordance with the phased production proposal. Additionally, manufacturers are investing in the development of new technologies and electric infrastructure in addition to increasing its production capacity to meet the demand brought about by the rising sales of electric vehicles in India. Thus, driving the Market revenue.
India Automotive Industry Market Segment Insights:
India Automotive Industry Market Vehicle Type Insights
The market segmentation, based on vehicle type includes Two-Wheelers, Passenger Cars, Commercial Vehicles and Three-wheelers. The three-wheelers segment dominated the market mostly. Short-distance transportation is frequently provided by three-wheelers. Since three-wheelers offer inexpensive short-distance passenger transportation, the market benefits from Indian consumers' great price sensitivity. Because of the country's expanding population, which sustains transportation need, the demand is anticipated to be constant over time.
India Automotive Industry Market Fuel Type Insights
The India Automotive Industry market segmentation, based on fuel type, includes Diesel, Petrol/Gasoline, CNG and LPG, Electric and Others. The electric category generated the most income. A number of factors, such as government incentives, increased environmental awareness, and technological breakthroughs, are contributing to the boom in demand for electric vehicles that the Indian automotive sector is experiencing. Government rules and incentives have played a significant role in driving the adoption of EVs in India.
Figure 1: India Automotive Industry Market by Fuel Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
India Automotive Industry Market Regional Insights
India is a globally recognized center for automobile manufacture due to its affordable output. The manufacturing sector is driven by cheap labor costs, easy access to and low cost raw materials, and a weak currency. With an average yearly production of about 4 million motor cars, India ranks as the fourth largest producer of automobiles worldwide. The growing middle class and younger population in India are also expected to contribute significantly to the country's automobile market's projected rapid expansion. Additionally, exports from the nation have increased significantly as a result of the growing demand for autos. Indian car exports increased from 291,170 units in April to December 2021 to 424,037 units in December 2021. Furthermore, the market is anticipated to see increased demand for commercial vehicles from the expanding passenger and logistical sectors. Policies and initiatives from the government have a significant impact on market growth and are predicted to continue doing so in the years to come.
India Automotive Industry Market Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the India Automotive Industry Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, automotive industry industry must offer cost-effective items.
Key Companies in the India Automotive Industry Market include
- TVS Motor Company
- Hero Moto Corp.
- Honda Motorcycle & Scooter India Pvt. Ltd.
- Royal Enfield
- Bajaj Auto Corp.
- Suzuki Motorcycle India Private Limited
- Tata Motors Limited (includes Tata and Jaguar)
- Hyundai Motor India Ltd
- Mahindra & Mahindra Limited
- MG Motor India Pvt. Ltd
- BMW AG (includes BMW and MINI)
- Mercedes-Benz India Pvt Ltd
- Lohia Auto Industries
- Piaggio & C. SpA
- Scooters India Ltd.
- Atul Auto Limited
- Terra Motors India Corp.
India Automotive Industry Market Segmentation
India Automotive Industry Market Vehicle Type Outlook
- Passenger Cars
- Commercial Vehicles
Automotive Industry Fuel Type Outlook
- CNG and LPG
|Market Size 2022
|USD 100.5 Billion
|Market Size 2023
|USD 109.3 Billion
|Market Size 2032
|USD 214.7 Billion
|Compound Annual Growth Rate (CAGR)
|Market Forecast Period
|Market Forecast Units
|Value (USD Billion)
|Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
|Vehicle Type, Fuel Type, and Region
|Key Companies Profiled
|TVS Motor Company, Hero Moto Corp., Honda Motorcycle & Scooter India Pvt. Ltd., Royal Enfield, Bajaj Auto Corp., Suzuki Motorcycle India Private Limited, Tata Motors Limited (includes Tata and Jaguar), Hyundai Motor India Ltd, Mahindra & Mahindra Limited, MG Motor India Pvt. Ltd , BMW AG (includes BMW and MINI), Mercedes-Benz India Pvt Ltd, Lohia Auto Industries, Piaggio & C. SpA, Scooters India Ltd., Atul Auto Limited, Terra Motors India Corp
|Key Market Opportunities
|Growing government support for policies Global leaders are investing more in the production of automobiles in India
|Key Market Dynamics
|Growing demand for electric vehicles Rising numbers of middle-class people
India Automotive Industry Market Highlights:
Frequently Asked Questions (FAQ) :
The India Automotive Industry market size was valued at USD 100.5 Billion in 2022.
The market is projected to grow at a CAGR of 8.80% during the forecast period, 2023-2032.
The key players in the market are TVS Motor Company, Hero Moto Corp., Honda Motorcycle & Scooter India Pvt. Ltd., Royal Enfield, Bajaj Auto Corp., Suzuki Motorcycle India Private Limited, Tata Motors Limited (includes Tata and Jaguar), Hyundai Motor India Ltd, Mahindra & Mahindra Limited, MG Motor India Pvt. Ltd , BMW AG (includes BMW and MINI), Mercedes-Benz India Pvt Ltd, Lohia Auto Industries, Piaggio & C. SpA, Scooters India Ltd., Atul Auto Limited, Terra Motors India Corp.
The three-wheelers category dominated the market in 2022.
The electric category had the largest share in the market.
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