Market size of Automobile Sector
The Indian automotive industry is expected to reach US$ 300 billion by 2026. India could be a leader in shared mobility by 2030, providing opportunities for electric and autonomous vehicles
Market size of real Automobile in India (Million)
The automotive manufacturing industry comprises the production of commercial vehicles, passenger vehicles, three wheelers and two wheelers.
In the first quarter of FY23, total production of passenger vehicles, commercial vehicles, three wheelers, two wheelers, and quadricycles was 6,326,483 units.
The Indian auto industry is expected to record strong growth in FY23, post recovering from the effects of the COVID-19 pandemic. Electric vehicles, especially two wheelers, are likely to witness positive sales in FY23.
A report by India Energy Storage Alliance estimated that the EV market in India is likely to increase at a CAGR of 36% until 2026. In addition, projection for the EV battery market is forecast to expand at a CAGR of 30% during the same period.
Opportunities in various segments
- All
- Creating sizeable market
- Small car manufacturing hub
- Fast emerging as a global R&D hub
Creating sizeable market
Mahindra & Mahindra (M&M) is planning to implement innovative digital technology in the automobile business.
Hyundai is planning to enter the hybrid vehicles segment to explore alternative fuel technology and to avail government incentives.
Small car manufacturing hub
Nissan and Toyota announced plans to make India their global hub for small cars.
Strong export potential in ultra low-cost cars segment (to developing & emerging markets).
Fast emerging as a global R&D hub
Strong support from the Government; setting up of NATRIP centres.
Private players such as Hyundai and Maruti Suzuki keen to set up R&D base in India.
India could be a leader in shared mobility by 2030
providing opportunities for electric and autonomous vehicles.
Why We Choose
Policy support
- Initiatives like Make in India, the Automotive Mission Plan 2026 and NEMMP 2020 will give a huge boost to the sector
- In the Union Budget 2022-23, the government introduced a battery-swapping policy, which will allow drained batteries to be swapped with charged ones at designated charging stations, thus making EV’s more viable for potential customers
- To install electric vehicle supply equipment (EVSE) infrastructure for EVs, various public sector firms, ministries and railways have come together to create infrastructure, and to manufacture components
Growing demand
- Rising income and a growing young population
- Greater availability of credit and financing options
- Demand for commercial vehicles increasing due to high level of activity in the infrastructure sector
High investment
- As of June 2021, Rs. 871 crore (US$ 117 million) has been spent under the FAME-II scheme, 87 ,659 electric vehicles have been supported through incentives and 6,265 electric buses have been sanctioned for various state/city transportation undertakings.
- In July 2021, India inaugurated the national automotive test tracks (NATRAX), which is Asia’s longest high-speed track to facilitate automotive testing.