Market Reports

Automotive Sector In India

UJA | Market Reports of Automotive Sector In India
1Indian Automotive Sector- Quick Facts
2Automotive Clusters in India
3Five Megatrends Impacting the Indian Automotive Sector
4Overview of Electric Vehicles Market in India
5Some of key investment in EV Industry

Indian Automotive Sector: Quick Facts

Indian Automotive Sector Expected to Reach USD 300 Billion by Year 2026
The world’s largest two-wheeler market and the third largest heavy truck manufacturer
World’s largest manufacturer of three-wheelers and tractors
World’s second-largest bus manufacturer and largest manufacturer of cars
FDI worth USD 33.77 billion from April 2000 to September 2022
India exported ~ 5.617 million automobiles in FY 22
Electric vehicles are expected to be a USD 19 billion opportunity in India by 2028.

Automotive Clusters in India

UJA | Clusters In India

Automotive - Leading Players


  • Ashok Leyland
  • Force Motors
  • Piaggio
  • Swaraj Mazda
  • Amtek Auto
  • Eicher
  • Honda SIEL
  • Maruti Suzuki
  • Tata Motors
  • Bajaj Auto
  • Hero Group
  • Escorts
  • ICML
  • JCB
  • Yamaha
  • Mahindra
  • Suzuki Motorcycles


  • Ashok Leyland
  • Bajaj Auto
  • FIAT
  • M&M
  • Eicher
  • Skoda
  • Bharat Forge
  • Tata Motors
  • Volkswagen
  • Renault Nissan
  • John Deere
  • Mercedes Benz
  • Tata Hitachi
  • Volvo Eicher


  • Tata Motors
  • Hindustan Motors
  • Simpson & Co
  • International Auto
  • Forgings
  • JMT
  • Exide


  • Ashok Leyland
  • M&M
  • Toyota Kirloskar
  • Volvo
  • Sundaram Fasteners
  • Enfield
  • Hyundai
  • BMW
  • Bosch
  • TVS Motor Company
  • Renault Nissan
  • TAFE
  • Daimler
  • Caterpillar
  • Hindustan Motors

Five Megatrends Impacting the Indian Automotive Sector


Global Influence

  • Indian companies going global
  • Next wave of global companies coming to India to set up their plant

Mobility Infrastructure

  • Encouragement given to public
  • Huge FDI and private sector investments in road infrastructure

  • Smart cities projects

Evolving Customer Expectations

  • Changing customer profiles
  • Increase in product awareness
  • Customers are becoming more digitally savvy
  • Surge in institutional customers 

Evolving Technologies

Rapid adaptation of new technologies in-

  • Vehicles (electric, driverless, connected)
  • Supply chain (digitized trucking, automated warehouses)
  • Business (mobility, sharing)

Regulatory Environment

  • Introduction of Goods and Service Tax
  • Shift from BS IV to BS VI standards
  • Introduction of CAFÉ norms, ABS for two-wheelers, higher axle loads for commercial vehicles, and end-of-life scrappage policies
  • Adoption of Electric Vehicles through FAME-2
  • National Automotive Testing and R&D centres have been setup.

Overview of Electric Vehicles Market in India

In 2022, the Indian electric vehicle market was pegged at USD 772 million and is projected to reach USD 19,980 Million by 2028.

In the short and medium term, two-wheelers and three-wheelers (rickshaws) are expected to drive electrification of the vehicles.

Key growth drivers include:

  • Expanding the deployment of charging stations
  • Rising acceptance of low-emission, fuel-efficient, and high-performance automobiles
  • Increased environmental consciousness amongst citizens

The Government of India has taken initiatives to promote electric vehicle adoption in India. Some of them are:

  • Tax exemption of up to Rs. 1,50,000 (USD 1,960) under Section 80EEB of the Income Tax Act for purchasing an EV (2W or 4W) on loan
  • Reduction of customs duty on nickel ore (a key component of lithium-ion batteries) from 5% to 0%.
  • State-specific concessions on road tax and other incentives given by the respective states

The government aims to reach 100% EV adoption by the year 2030.

There are huge opportunities for foreign companies in this sector, especially for manufacturing battery compounds, other components and setting up charging stations. Key factors that will drive the adoption of EVs in India

Key Factors that will Drive
Adoption of EVs in India

UJA | EVS in India

Some of Key Investments in EV Industry


EV related plans


Kia plans to manufacture small SUVs and EVs in India for global markets in 2025.

Maruti Suzuki

Maruti Suzuki plans to launch its first EV model in India by 2025.

Tata Motors

Tata Motors bags an order worth USD 678 million (Rs 5,000 crore) from the government for electric buses; it plans to launch 10 more EVs in India.


Hopcharge, a Gurgaon-based start-up, has created the world’s first on-demand doorstep fast charge service.

MG Motors

MG Motors India has partnered with Bharath Petroleum to expand the EV charging infrastructure.

Mahindra & Mahindra

Mahindra and Mahindra targets to launch 16 EV models across its SUV and LCV categories by 2027.

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