AUTOMOTIVE SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Automotive Industry in India
- Industry Clusters
- Growth Drivers
- Key Players
- Market Stats
The automotive industry accounting for 7.1% of India’s total GDP and with the new Automotive Mission Plan 2026 the government expects to triple the industry’s revenue which then will account for an impressive 12% of the GDP. India is the world’s 4th largest producer of cars and is now battling with China to become the largest two-wheeler market. India is expected to become the third largest automotive market in the world by 2020. The demand for private vehicles doesn’t seem to slow down with a growing working population, expanding middle class and increasing disposable income, thus more people are able to afford a car and to whom a car is still a desire, public transport systems are emerging and improving in major cities. India already is a manufacturing destination for most global automobile companies. This attracts many Foreign Direct Investments to India, as well as supports local supplying companies. The auto-component parts sector has shown the strongest growth in the automotive industry with 18.3%. The Automotive Component Manufacturers Association of India (ACMA) strongly recommends national and international companies to invest in R&D in order to make India strong on the current electric vehicle trend. The Indian automotive sector is considered as the world leader of electric vehicles and 87% of the car owners said to be ready to shift to electric vehicles. The trend towards electric vehicles requires lots of innovations & investments and already attracted 19.3 billion USD in the period of 2000 to 2018 but now also enjoys the prospect of 2 major investments from Hyundai and Saic motors. In addition to this, numerous companies already operating in India have opened new plants in India to match the upcoming demand. The current trends have a lot of potential for foreign companies who can contribute to the automotive sector with its knowledge, innovation, and supportive activities. Additionally, companies can find a large pool of inexpensive, skilled workforce for this industry in India, which opens opportunities for companies wanting to enter the Indian market.
- 30% Clients of M+V serve the Automotive Industry
- M+V manages an Throughput of USD 13 Million
- 5000 SKU`s are managed by M+V
- M+V is approved Supplier of 225 Customers
- The ever-growing demand for automobiles
- The government has set its goals on creating India as a global manufacturing center and R&D hub.
- In the Automotive Mission Plan 2026, the government and industry set a target to triple industry revenues, to an ambitious $300 billion, and expand exports sevenfold, to $80 billion.
- The passenger vehicle sales in India crossed the 3.2 million units in FY18, and is further expected an increase to 10 million units by FY20.
- The automotive sector contributes more than 7 percent to India’s GDP and The Automotive Mission Plan 2016–26 sets an aspiration to increase the contribution to 12 percent.
- Passenger vehicle market forecasted to grow at a CAGR of 18%, and commercial vehicles at a CAGR of 19% from 2014-2021
- Six million-plus hybrid and electric vehicles projected to be sold annually, by 2020
- Vehicle sales are expected to touch 66 million units by 2026
Key Players in India
- Mercedes-Benz, BMW, Hyundai, Renault-Nissan, Mitsubishi, Suzuki, VW, Honda, Ford, Toyota, GM, Yamaha, Piaggio, Audi
- Tata (Jaguar), Bajaj Auto, Mahindra&Mahindra, Hero Motors, Force Motors, TVS Motors, Eicher Motors, Maruti Suzuki
- The industry has attracted Foreign Direct Investment (FDI) worth US$ 19.29 billion during the period April 2000 to June 2018
- Automobiles and auto components contribute 7.1% and 2.3% respectively to the country’s GDP
- India is the largest tractor manufacturer, second largest two-wheeler and bus manufacturer, fifth largest heavy truck manufacturer, sixth largest car manufacturer, and eighth largest commercial vehicle manufacturer in the world
- India is exporting more than 3.5 million vehicles annually
- 07 million Vehicles were manufactured in the country in FY18
- Indian automotive sector today is valued at USD 74 billion
- Sales of electric two-wheelers are estimated to have crossed the 55,000 vehicles in 2017-18