The Indian automobile industry constitutes 7.1% of India’s GDP and employs approximately 29 million people. In 2017 sales of passenger and commercial vehicles grew by 9.5% and India emerged as the 4th largest market in the world with 4.02 million units sold.
The automotive industry consists of commercial and passenger vehicles, including two & three wheelers. The major automobile manufacturing establishments are around Delhi-Gurugram-Faridabad; Mumbai-Pune-Nashik-Aurangabad; Chennai-Bengaluru-Hosur and Kolkata-Jamshedpur.
On April 1, 2017 Bharat Stage-VI emission norms came into effect. Industry is expected to manufacture compliant vehicles from 2020. The industry is shifting to electric vehicles (EV) to reduce its carbon foot print and decrease levels to approximately 35% by 2030.
- Total production of passenger vehicles crossed 4 million in March 2018. While sales grew by 6.38% to 300,722 units, over 747,000 units were exported.
- SIAM expects higher passenger vehicle sales in 2018-19. Commercial vehicles likely to grow at a low double-digit.
|Segment-Wise Sales||FY2016-17||FY2017-18||Change (%)|
Source: SIAM, Industry Data
- Automotive Mission Plan 2016-26 targets a 4-fold growth in the automobile sector, which includes automobiles manufacturers, OEMs & tractor industry
- US$388 million will be spent under National Automotive Testing and R&D Infrastructure Project to create state-of-art R&D infrastructure
- Motor Vehicles (Amendment) Bill, 2017 passed by the Lok Sabha addresses issues such as third-party insurance, regulation of taxi aggregators, road safety and citizens’ facilitation by the transport department, strengthening rural transport, last mile connectivity and public transport, automation and computerization and enabling online services
- Draft Voluntary Vehicle Fleet Modernization Program proposes to scrap the use of vehicles over 15 years
- In 2013, National Electric Mobility Mission Plan (NEMMP) 2020 was launched to achieve national fuel security by promoting hybrid and EVs and targets the sale of 6-7 million units of hybrid and EVs y-o-y. Energy Efficiency Service Ltd. is floating tenders for electric cars to give impetus to its usage.
- Automobiles to be digitally enabled with a national rollout of reloadable RFID Smart Tag operational at 180+ toll plazas
- Faster Adoption and Manufacturing of (Hybrid) Electric Vehicles in India (FAME) policy supports the development of EV and hybrid vehicles and their manufacturing ecosystem to achieve self-sustenance by 2020. Central Government proposed financial support of US$1.3 billion under Phase II of FAME towards manufacturing of zero emission vehicles.