Auto & Auto Ancillaries


The Automobile Industry in India is world’s fourth largest, with the country currently being the world's fourth largest manufacturer of cars and seventh largest manufacturer of commercial vehicles in 2018. Indian automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers dominate the industry and made up 81 per cent share in the domestic automobile sales in FY19. Overall, Domestic automobiles sales increased at 6.71 per cent CAGR between FY13-18 with 26.27 million vehicles being sold in FY19. Indian automobile industry has received Foreign Direct Investment (FDI) worth US$ 23.51 billion between April 2000 and September 2019. Five per cent of total FDI inflows to India from April 2000 to June 2019 went into the automobiles sector.

The Government aims to develop India as a global manufacturing as well as a research and development (R&D) hub. It has set up National Automotive Testing and R&D Infrastructure Project (NATRiP) centres as well as a National Automotive Board to act as facilitator between the Government and the industry.

The Indian government has also set up an ambitious target of having only electric vehicles being sold in the country. Indian auto industry is expected to see 8-12 per cent increase in its hiring during FY19. The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. 

Overall automobile exports increased by 14.50 per cent year-on-year in FY19 and during April-December 2019, overall export increased by 3.9 per cent. It is expected to grow at a CAGR of 3.05 per cent during 2016-2026.

Domestic two-wheeler industry is expected to grow at 8-10 per cent during FY19. Also, luxury car market in India is expected to grow at a 25 per cent CAGR till 2020. The Government of India expects automobile sector to attract US$ 8-10 billion in local and foreign investments by 2023. India will be part of Global Automotive Triumvirate - the global Big 3 in coming 20 years and will also exceed the Indian automotive sales from US market by mid 2030s.

Source: https://www.ibef.org/archives/industry/automobiles-reports/indian-automobiles-industry-analysis-january-2020

 

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