Discover the Boom: India's Thriving Automobile Market
India is emerging as one of the world’s most dynamic automobile markets, with substantial growth potential and increasing global significance.
Segmented Market and Growth Trends
| Segment | Market Share (FY23) |
|---|---|
| Two-wheelers | 75% |
| Passenger cars | 18% |
| Commercial & three-wheelers | 7% |
India’s EV Market: India is the world’s largest manufacturer of electric two-wheelers (E2W) and electric three-wheelers (E3W). The EV Market sold 1.67 million EVs in FY24, growing at a CAGR of 36% until 2026.
India's Manufacturing & Export Strength
Manufacturing Hub
Global manufacturers lead small car production.
Export Growth
Expanding presence in global markets.
Market Reach
Strong penetration in Africa, Latin America, ASEAN, and Europe.
Future Outlook
Significant growth projected by 2028.
Key International Investments in India's Auto Sector
$5.5 billion investment to double capacity by 2030.
$3.85 billion investment in EV expansion and R&D.
$1.08 billion investment in Tamil Nadu for new vehicle manufacturing.
Government Policies Supporting the Auto Sector
PLI Scheme ($3.49B)
Provides incentives for automakers and component manufacturers to boost domestic production and innovation.
FAME II Initiative ($1.2B)
Promotes adoption of electric and hybrid vehicles through direct subsidies and infrastructure support.
PM E-DRIVE Scheme ($1.3B)
Latest investment program focused on accelerating EV adoption between 2024-2026.
Battery Waste Management Rules
Regulatory framework establishing sustainable battery disposal practices to strengthen the EV ecosystem.
Foreign Investment and Business Expansion Opportunities
100% FDI Allowed
The automobile sector operates under the automatic route, allowing complete foreign direct investment without government approval.
EV Market Leadership
Projected to become the world's largest EV market by 2030, with $200 billion investment opportunity in next 8-10 years.
Strong FDI Inflow
Total FDI inflow of $36.26 billion between April 2000 – March 2024, showing continued investor confidence.
PLI Scheme Success
Production-Linked Incentive Scheme has already attracted $8.18 billion in investments to boost local manufacturing.
