Automobile

Automobile Sector resulted in 5.41% of the total FDI inflow as per the Sept 2023 DPIIT Report.

Last updated: March 8, 2024

India’s annual production of automobiles in FY21 was 22.65 million vehicles, and 13 million vehicles were produced between April-October 2021

World's largest

Manufacturer of two-wheelers and three-wheelers in the world

7.1%

Contribution to GDP

4.7%

Contribution to total exports of the country

37 million

Employment generated

US$ 33.77 bn

Foreign investment received between April 2000 to September 2022.

47,61,487

Export of total number of automobiles in 2022-23

$50 Bn

Market size for the financing of EVs in 2030

100%

FDI permitted through an automatic route in the auto industry.

5X

hike in exports targeted by the Indian auto sector in the coming years.

National Policy on Biofuels (Amendment) 2022

The futuristic policy aims to resolve several issues surrounding road transportation in India. It comes amid rapid expansion of roadways network around the nation.

FAME

The 1st Phase of FAME India scheme was implemented through four focus areas namely (i) Demand Creation, (ii) Technology Platform, (iii) Pilot Project and (iv) Charging Infrastructure.

FAME II

The main objective of the scheme is to encourage faster adoption of electric and hybrid vehicle by way of offering upfront incentive on purchase of electric vehicles and also by way of establishing a necessary charging Infrastructure for electric vehicles. The scheme will help in addressing the issue of environmental pollution and fuel security.
National Electric Mobility Mission Plan 2020

Aims to promote hybrid and electric vehicles in the country.
National Auto Policy (Draft)

To provide a long-term, stable and consistent policy regime and to have a clear roadmap for the automotive industry, making India a globally competitive auto R&D and manufacturing hub and achieving the targeted objectives of green mobility.
Automotive Mission Plan 2016-26

AMP 2026 seeks to communicate the Government and industry's intent and objectives pertaining to the Indian automotive industry, to multiple stakeholders in India and overseas.
National Automotive Testing and R&D Infrastructure Project

The Union Cabinet has approved the revised cost estimate for Rs.37.3bn for the National Automotive Testing and R&D Infrastructure Project (NATRIP).

Guidelines & Standards for Charging Infrastructure for Electric Vehicle

Under the new guidelines for the electric vehicle charging infrastructure, there must be at least one charging station in a grid of 3 x 3 km in all megacities and one charging station every 25 km on both sides of highways.
Phased Manufacturing Programme of EVs

The following Phased Manufacturing Programme (PMP) is notified with the objective of development of domestic manufacturing of electric vehicles, its assemblies/sub-assemblies, and parts/sub-parts, thereby increasing the domestic value addition and creating employment opportunities.
PLI Scheme to 10 key Sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports

The PLI scheme across 10 specific key sectors will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain.

Department of Heavy Industry

011-23062365

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The Department promotes engineering industry, heavy electrical, industrial machinery and auto industry.

Society of Indian Automobile Manufacturers

011 – 24647810 -12

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Apex industry body representing leading vehicle and vehicular manufacturers in India.

Automotive Component Manufacturers Association of India

080 2570 2855

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A body which represents the automotive component industry.

Automotive Research Association of India

+91-020-30231111

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Authorized testing and certifying agency.

National Automotive Testing and R&D Infrastructure Project

+ 91-11-49215555

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National Automotive Testing and R&D Infrastructure Project (NATRiP), is a fully Government of India funded project with a total project cost of Rs.37.3 billion.

Department of Heavy Industry

Investment Opportunities

  • Export of automobiles registers a growth of 35.9% from 2020-21 to 2021-22.
  • Hyundai Motor India's first rollout from new plant likely to be electric SUV, in 2025.
  • Export Market - As many as five auto hubs across India to be further developed to increase export.
  • R&D - India's research and academic institutions are leading activity in disruptive mobility solutions.
Useful Links:

Key Investors

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive and capital establishments

Ford - US$1bn investment with large manufacturing facility in Chennai.

General Motors - exports from focused manufacturing base in India.

Hyundai - runs plant near Chennai and multi-million dollar R&D unit.

Renault - 4% share of Indian car market and a global R&D centre.

Toyota-Kirloskar Motor manufactures and sells vehicles in India.

Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, Japan, is India’s largest passenger car maker. Maruti Suzuki is credited with having ushered in the automobile revolution in the country.

ENABLING ENVIRONMENT

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive, and capital establishments

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News

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Events

Nov 26,2024

Financial Inclusion & Fintech Summit
Nov 27,2024

5th edition of the International Energy Conference and Exhibition
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