India's Automobile Industry: Growth & Trends | IBEF


India's automobile industry is experiencing significant growth, particularly in the electric vehicle sector, with projections indicating substantial market expansion and investment opportunities.
AI Summary available β€” skim the key points instantly. Show AI Generated Summary
Show AI Generated Summary
We located an Open Access version of this article, legally shared by the author or publisher. Open It

The Indian passenger car market was valued at US$ 32.70 billion in 2021, and it is expected to reach a value of US$ 54.84 billion by 2027 while registering a CAGR of over 9% between 2022-27. The global EV market was estimated at approximately US$ 250 billion in 2021 and by 2028, it is projected to grow by 5 times to US$ 1,318 billion.

Two-wheelers and passenger cars accounted for 75.04% and 21.38% of market shares, respectively, in FY25*. In FY25 (April-September), the total production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles was 1,56,22,388 units.

India accomplished a significant milestone, with the sale of 1,00,000 EVs in CY24 compared to 82,688 in CY23.

A study by CEEW Centre for Energy Finance recognised a US$ 206 billion opportunity for electric vehicles in India by 2030. This will necessitate a US$ 180 billion investment in vehicle manufacturing and charging infrastructure.

According to NITI Aayog and the Rocky Mountain Institute (RMI), India's EV finance industry is likely to reach US$ 50 billion (Rs. 3.7 lakh crore) by 2030.Β 

A report by the India Energy Storage Alliance estimated that the EV market in India is likely to increase at a CAGR of 36% until 2026. In addition, the projection for the EV battery market is expected to expand at a CAGR of 30% during the same period.

Indian automotive industry is targeting to increase the export of vehicles by five times during 2016-26. In FY23, total automobile exports from India stood at 47,61,487. Indian automobile exports of two-wheelers stood at 36,52,122 in FY23.

🧠 Pro Tip

Skip the extension β€” just come straight here.

We’ve built a fast, permanent tool you can bookmark and use anytime.

Go To Paywall Unblock Tool
Sign up for a free account and get the following:
  • Save articles and sync them across your devices
  • Get a digest of the latest premium articles in your inbox twice a week, personalized to you (Coming soon).
  • Get access to our AI features

  • Save articles to reading lists
    and access them on any device
    If you found this app useful,
    Please consider supporting us.
    Thank you!

    Save articles to reading lists
    and access them on any device
    If you found this app useful,
    Please consider supporting us.
    Thank you!