Automotive Industry in India | Maier+Vidorno – Your India Expert

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Statistics, news & updates: everything you need to know about the AUTOMOTIVE Industry in India


  • Summary
  • COVID-19 Impact
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats


The automotive industry accounts for 7.5% of India’s total GDP. Further, with the new Automotive Mission Plan 2026, the government expects to triple the industry’s revenue. With this move, the sector will account for an impressive 12% of the GDP. India is the world’s 4th largest producer of cars. Not only this but also 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. This is despite a growing working population, expanding middle class, and increasing disposable income. Therefore, more people can afford a car. Besides, for whom a car is still a desire, public transport systems are emerging and improving in major cities. Further, India is a manufacturing destination for most global automobile companies. Therefore, this attracts many Foreign Direct Investments to India, as well as supports local supplying companies. Nevertheless, the auto-component parts sector has shown the strongest growth of 18.3% in the automotive industry. For the purpose of this the Automotive Component Manufacturers Association of India  (ACMA) strongly recommends national and international companies invest in R&D. This will make India strong on the current electric vehicle trend. Therefore, the Indian automotive sector is considered the world leader in electric vehicles. In fact, about 87% of car owners are ready to shift to electric vehicles. The trend toward electric vehicles requires lots of innovations and investments.
Above all, the sector already attracted 19.3 billion USD between 2000 to 2018. In addition, it also enjoys the prospect of 2 major investments from Hyundai and Saic motors.
Moreover, numerous companies already operating in India have opened new plants in India to match the upcoming demand. As a result, the current trends have a lot of potential for foreign companies. Not only they can contribute to the automotive sector with their knowledge but also with their innovation, and supportive activities. Additionally, companies can find a large pool of inexpensive, skilled workforce for this industry in India. Subsequently, this further opens  opportunities for companies wanting to enter the Indian market.

Covid Impact

In the wake of the ongoing Covid pandemic and subsequent lockdowns, the Indian automotive industry suffered Rs 2,300 loss crore per day and an estimated job loss in the sector was about 3.45 lakh, according to a parliamentary panel report. all the major original equipment manufacturers (OEM) have cut down their production by 18-20 percent due to low demand and decline in sales of vehicles. As a result, the employment scenario in the automobile sector has been affected, and an estimated job loss in the auto sector at 3.45 lakh. Moreover, the companies are having to prioritize employee protection and safety. They have to monitor and track employee health status, follow the most conservative disease control protocols, define travel guidelines & quarantine requirements, and plan for flexible work plans and home office.   Despite the ongoing COVID challenge, the Indian automotive industry appears to be overcome most of its challenges, with many in the rearview mirror. New tailwinds, such as global supply-chain rebalancing, government incentives to increase exports, and technology disruptions that create white spaces, are also helping the sector. These advancements will aid in the creation of opportunities at all levels of the automotive value chain. The statistics below are taken from Industry data available pre-Corona virus impact.

Market Stats


  • Nonetheless, the industry is expected to reach 135 billion by 2020 and 300 billion by 2026. The growth is expected at a CAGR of 15%.
  • Automobile exports grew 14.5 per cent during FY 2019.
  • Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY 2013-19. Around 26.27 million vehicles got sold in FY19.
  • In April-March 2019, overall automobile exports grew by 14.5%.

Map – Industry Clusters

Growth Drivers

  • Above all, India is expected to be the world’s third-largest automotive market in terms of volume by 2026.
  • The sale of passenger vehicles has increased by 2.7%, two-wheeler by 4.86% and three-wheeler by 10.27% during 2018-19 viz-a-viz 2017-18.
  • Further, the Indian automotive industry accounts for 7.1% of the country’s total Gross Domestic Product (GDP).
  • As a matter of fact, India is also a prominent auto exporter and has strong export growth.
  • Moreover, the Government of India encourages foreign investment in the automobile sector. In addition, it allows 100 per cent FDI under the automatic route.

M+V Expertise

  • 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

Key Players in India


  • Tata Motors Ltd.
  • Mahindra & Mahindra Ltd.
  • Maruti Suzuki India Ltd.
  • Hero MotoCorp Ltd.
  • Bajaj Auto Ltd.
  • Ashok Leyland Ltd.
  • Sundaram Clayton Ltd.
  • TVS Motor Company Ltd.
  • Eicher Motors Ltd.
  • Force Motors Ltd.


  • Auto Parts & Equipment – includes tyres
  • Automobile


  • Toyota Motor Corporation
  • Volkswagen Group
  • BMW
  • Tesla Inc.
  • Ford
  • Nissan
  • Mercedes-Benz
  • Bolwell
  • Automobili Lamborghini S.p.A.
  • Aston Martin Lagonda Limited
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