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-19 Impact

Although, the Indian automotive sector before Covid-19 crisis was already seeing a downfall of nearly 18% in FY20. Consequently, the situation turned even worse with the Covid-19 pandemic and the ongoing lockdowns across the country and the remaining world. Even more, the automobile and component manufacturing plants across the globe are being shuttered. So much so that India imports about 27% of automotive parts from China. Besides, all the major global auto part makers have factories located in China. In the event of the closure of these factories, vehicle production and delivery have been severely impacted.

Moreover, there are other challenges like lower consumer footfalls in showrooms, a drastic reduction in vehicle sales, negative consumer sentiment, liquidity crunch, and potential bankruptcies. Besides these, owing to the domestic and global exposure, automotive suppliers in India might face other challenges like lower domestic sales leading to reduced revenues and lower capacity utilisation.

Owing to these challenges, FY 2020 and FY 2021 seem to be challenging for the Indian automotive sector. In fact, it is projected that the automotive industry demand would go down by 15% to 25% in FY21. However, it is believed that the sector will see a recovery from the third quarter of FY21.

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

Map- Industry Clusters - Automotive

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.


  • 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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