India is the world’s 3rd largest automobile market. The Automobile industry produced a total 28.43 Mn vehicles in Apr 2023 to Mar 2024. India is the world’s largest manufacturer of two-wheelers, with over 21 Mn produced annually. India is the world largest manufacturer of tractors. World’s third largest heavy truck manufacturer and fourth largest car manufacturer.
The Automobile industry contributes 7.1% share in India’s GDP and 4.7% shares in India’s exports, as per FY 24. The automobile industry has generated employment of 37 Mn.
India aims to double its auto industry size to INR 15 lakh crore by end of year 2024. Export of total number of automobiles in 2023-24 was recorded at 45 lakhs out of which two wheelers accounted for about 76.8% of the total exports. As per the Mar 2024 DPIIT Report, Automobile sector resulted in 5.34% of the total FDI Inflows.
Electronic Vehicles (EV) Market is expected to grow at CAGR of 49% between 2022-2030 and the EV Industry would create 5 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 now.
India’s trucking market is expected to grow over 4x by 2050. The number of trucks is expected to more than quardruple, from 4 Mn in 2022 to roughly 17 Mn trucks by 2050.
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