Market Reports

Automotive Sector In India

UJA | Market Reports of Automotive Sector In India


Indian Automotive Sector: Quick Facts


Automotive Clusters in India


Megatrends Impacting the Indian Automotive Sector


India’s Automobile Industry Scenario


Overview of Electric Vehicles Market in India


Key Investments in the EV Industry


Recent/Planned Developments in the Indian Automobile Sector

Indian Automotive Sector: Quick Facts

The world’s largest two-wheeler manufacturer
Third largest heavy truck manufacturer
World’s largest manufacturer of tractors
World’s second-largest bus manufacturer and fourth-largest manufacturer of cars
Seventh largest in commercial vehicle manufacturing
Automobile sector contributes 49% to India’s manufacturing GDP
India exported ~ 4.8 million automobiles in 2022-23
Indian Government targets 30% vehicles on road should be electric by 2030
Total 3.7 Mn electric vehicles already registered in India
12,146 operational Public EV charging stations in India currently
419 public EV charging stations operational on national highway
Y-o-y growth of 209% was witnessed with 1.0 million registered EVs in FY23, as compared to FY22
7.1% Share in India's GDP
37 million Employment generated
4.7% share in India’s exports
FDI worth USD 35.4 billion from April 2000 to September 2023 which is around 5.5% of the total FDI inflows in India during the same period
In the Union Budget 2023, the government has increased the budget allocation of (Faster Adoption and Manufacturing of Electric Vehicles) FAME II by 78%

Automotive Clusters in India

UJA | Clusters In India
  • In FY 2022-23, the Indian automobile industry produced a total 25.9 million vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers, and Quadricycles.
  • Predominant automotive clusters of India are Jamshedpur, Pune, Chennai, Gurugram, Faridabad, and Pithampur.
  • Two-wheelers and passenger vehicles together dominated India’s automobile production and accounted for 92.7% share in total vehicle production.

Automotive - Leading Players

North India

  • Ashok Leyland
  • Amtek Auto
  • Bajaj Auto
  • Force Motors
  • Piaggio
  • Swaraj Mazda
  • Volvo
  • Eicher
  • Honda Motor Company
  • Maruti Suzuki
  • Tata Motors
  • Hero MotoCorp
  • Escorts Kubota Ltd.
  • Sonalika Group
  • Yamaha Motor Company
  • Mahindra & Mahindra

West India

  • Ashok Leyland
  • Bajaj Auto
  • Fiat
  • Maruti Suzuki
  • Mahindra & Mahindra
  • Skoda
  • Tata Motors
  • Volkswagen
  • Renault Group
  • Nissan
  • John Deere
  • Mercedes Benz Group
  • Tata Hitachi
  • Volvo
  • Eicher
  • Kia Motors
  • Toyota Motor Corporation

East India

  • Tata Motors
  • Hindustan Motors
  • Maruti Suzuki
  • Bajaj Auto
  • Toyota Motor Corporation
  • Hyundai Motors Company
  • Volvo
  • Eicher
  • Honda Motor Company
  • Mahindra & Mahindra

South India

  • Ashok Leyland
  • Mahindra & Mahindra
  • Toyota Motor Corporation
  • Volvo
  • Eicher
  • Maruti Suzuki
  • Royal Enfield
  • Hyundai Motors Company
  • BMW
  • Bosch
  • TVS Motor Company
  • Renault Group
  • Nissan

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.
  • Smart cities projects.
  • Huge FDI and private sector investments in road infrastructure.

Evolving Customer Expectations

  • Advancement in automobile production technology.
  • Customers are becoming more digitally savvy.
  • Surge in institutional customers.

Evolving Technologies

The rapid adoption of new technologies in

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

Regulatory Environment

  • 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 centers have been setup.

India’s Automobile Industry Scenario

Overview of the Electric Vehicles Market in India

According to Invest India, India’s Electric vehicles market is expected to expand at a compounded annual growth rate (CAGR) of 45.5% between 2024-2030, with the segment’s volumes set to cross annual sales of 16 million units by 2030.

Key growth drivers include:

  • Expanding the deployment of charging stations.
  • Rising acceptance of low-emission, fuel-efficient, and high-performance automobiles.
  • Increased environmental consciousness among citizens.
  • The Fame India scheme is also started to promote electric vehicles.

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 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.

There are huge opportunities for foreign companies in this sector, especially for manufacturing battery compounds, and other components and setting up charging stations.

Some of Key Investments in EV Industry


EV related plans


Kia intends to start producing compact SUVs and electric vehicles in India for global markets in 2025

Maruti Suzuki

By 2025, Maruti Suzuki intends to introduce its first electric vehicle in India.

Tata Motors

The government placed an order with Tata Motors for Rs. 5,000 crore for electric buses, and the company intends to introduce 10 additional 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

By 2027, Mahindra & Mahindra plans to introduce 16 EV models in its SUV and LCV segments.

Hero MotoCorp

Hero MotoCorp announced an investment of Rs. 500 crore in California-based Zero Motorcycles to collaborate on the development of electric motorcycles

MG Motors

MG Motors announced plans to raise Rs. 3,000–4,000 crore in private equity in India to fund its future needs, including EV expansion

Hyundai Motors Company

Hyundai Plans to invest Rs. 4,000 crore in R&D in India, to launch six EVs by 2028

Recent and planned developments in the Indian Automobile Sector

  • According to IBEF, In November 2023, Tata Motors inaugurated its state-of-the-art registered vehicle scrapping facility in Chandigarh.
  • In June 2023, Hero MotoCorp revealed plans to invest up to Rs. 1,500 crore in developing premium bikes and EVs in India.
  • In May 2023, Maruti Suzuki India revealed plans to invest over Rs. 40,000 crore to double capacity by 2030.
  • In March 2023, the Central government sanctioned Rs. 800 crore million under FAME India Scheme Phase II to Indian Oil (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL), for setting up 7,432 public fast charging stations across the country.
  • In February 2023, German luxury car maker Audi India began local production of the Audi Q3 and Audi Q3 Sportback at the Skoda Auto Volkswagen India Private Limited (SAVWIPL) plant in Aurangabad.
  • In February 2023, Nissan and Renault revealed a plan to invest Rs. 4,800 crore in India over the next 3-5 years to expand their market share in passenger cars and electric vehicles.
  • In February 2022, a memorandum of understanding (MoU) was signed between the electric two-wheeler company Ather Energy and the Electric Supply Companies (ESCOMs) of Karnataka for setting up 1,000 fast charging stations across the state.
  • In November 2022, Maruti Suzuki India announced plans to spend nearly Rs. 7,000 crore on several projects this year, including the building of its new facility in Haryana and the introduction of new models.
  • In July 2022, TVS Motor lined up fresh investments of Rs. 1,000 crore in an EV push.
  • Two-wheeler EV maker HOP Electric Mobility, a diversified business venture of Rays Power Infra, is looking at investing RS 100 crore over the next two years to expand manufacturing capacity for its EVs.
  • In February 2022, 20 carmakers were chosen to receive production-linked incentives (PLI) as part of the government’s plan to increase local vehicle manufacturing and attract new investment. The 20 automobile companies have proposed a total investment of around Rs 45,000 crore.

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