Automobile Industry in India

By 2030, the Indian government has committed that 30% of the new vehicle sales in India would be electric.

Advantage India

Growing
Demand

*Rising middle-class income and young population will result in strong demand growth.

*The Indian automotive industry is targeting to increase the export of vehicles by five times between 2016-26.

*Automobile exports from India rose 19% to over 5.3 million units in FY25, led by strong demand for passenger vehicles, two-wheelers, and commercial vehicles abroad.

*The total production of Passenger vehicles*, three wheelers, two wheelers and quadricycle in the month of June 2025 was ~24 lakh units a ~17% growth over June 2023.

Growing Demand

Opportunities

*Focus shifting on electric cars to reduce emissions.

*Government aims to transform India into an R&D hub.

*India could be a leader in shared mobility by 2030, providing opportunities for electric and autonomous vehicles.

*The electric vehicles industry is likely to touch Rs. 20,00,000 crore (US$ 234 billion) and will create around five crore jobs by 2030.

Opportunities

Rising
Investment

* India offers 10-25% operational cost savings for auto firms compared to Europe and Latin America.

* The automobile sector attracted Rs. 2,48,683 crore (US$ 29.10 billion) in equity FDI between April 2000 and March 2025.

* India is set to become the largest EV market by 2030, with an investment potential exceeding US$ 200 billion over the next five years.

* The PLI scheme for automobiles and auto components received Rs. 2,818.9 crore (US$ 325.6 million) in FY26.

Rising Investment

Policy
Support

*Automotive Mission Plan 2016-26 is a mutual initiative by the Government of India and the Indian automotive industry to lay down the roadmap for the development of the industry.

*The Centre has launched the PM E-DRIVE scheme with a budget of US$ 1.30 billion (Rs. 10,900 crore), effective from October 1, 2024, to March 31, 2026. The initiative aims to accelerate the adoption of electric vehicles (EVs), establish charging infrastructure, and develop an EV manufacturing ecosystem in India.

Policy Support
Last updated: Oct, 2025

Automobile Clusters

  • Mumbai-Pune-Nashik-Aurangabad
  • Chennai-Bengaluru-Hosur
  • Delhi-Gurgaon-Faridabad
  • Kolkata-Jamshedpur
  • Sanand-Hansalpur-Vithalpur
Agriculture India

Posters

MORE
Automobile Companies in India

Automobile Companies in India

india is expected to become the third largest market for electric vehicles by 2025 at 2.5 million vehicles.

IBEF Campaigns

MORE
Discover India

Discover India

A campaign designed to showcase the country’s rich heritage, vibrant ...

Aatmanirbhar Bharat Utsav 2024

Aatmanirbhar Bharat Utsav 2024

Union Minister of External Affairs, Dr. S. Jaishankar and Union Commerce an...

Case Studies

MORE

India’s Animation & Comic Industry Expansion: The Rise of Indigenous Animated Content and Comic Storytelling

India’s Animation & Comic Industry Expansion: The Rise of Indigenous Animated Content and Comic Storytelling

India’s animation and comic industry is undergoing a dynamic transformation, evolving from a service-based outsourcing hub into a vibrant ecosys...

Driving Global: India’s Rising Passenger Vehicle Exports and its Emergence as an Automotive Export Hub

Driving Global: India’s Rising Passenger Vehicle Exports and its Emergence as an Automotive Export Hub

India’s automotive sector has long been a pillar of its industrial and economic strength. The growing momentum in passenger vehicle exports sign...

Fuelling Growth: How India’s Petrochemical Industry is Powering Economic Transformation

Fuelling Growth: How India’s Petrochemical Industry is Powering Economic Transformation

Petrochemicals are the unsung heroes of the modern industrial economy. Derived primarily from hydrocarbons such as natural gas and crude oil, these ch...

IBEF BLOG

MORE
India’s hand and power tools sector is set to unlock US$ 25 billion in exports
29 Sep 2025

India’s hand and power tools sector is set to unlock US$ 25 billion in exports

India is charting an ambitious course to become a global manufacturing powe...

How Urban Farming is Gaining Ground in India’s Metro Cities
26 Sep 2025

How Urban Farming is Gaining Ground in India’s Metro Cities

In India’s sprawling metro hubs, a quiet revolution is taking root. U...

India’s Healthcare Revolution: How Telemedicine Is Making Healthcare More Accessible Across India
25 Sep 2025

India’s Healthcare Revolution: How Telemedicine Is Making Healthcare More Accessible Across India

The COVID-19 pandemic significantly accelerated telehealth in India as in-p...

Partners
Loading...