The Indian auto industry became the 4th largest in the world with sales increasing 9.5% year-on-year to 4.02 million units (excluding two wheelers) in 2017. If you are looking for investment in the automobile industry in India, know that the sector was the 7th largest manufacturer of commercial vehicles in 2017. India holds a strong position in the international heavy vehicles arena as it is the largest tractor manufacturer, 2nd largest bus manufacturer and 3rd largest heavy trucks manufacturer in the world.
With FDI policy for automobile sector allowing 100% FDI under the automatic route, FDI equity inflows in Automobile industry amounted to $17.9 bn FDI between April 2000 and September 2017; contributing towards 5% of the total FDI inflows. FDI in automobile industry will bring with it technological progress, which will directly lead to economic development. Foreign direct investment in Indian automobile industry will stimulate industrialization, leading to more job opportunities.
World’s largest tractor manufacturer and 2nd largest bus manufacturer
World’s largest producer of BT Cotton
World’s 2nd highest number of USFDA approved plants
Currently valued at $75 bn, the automobile industry is estimated to touch the coveted $300 bn mark by 2026
With a $135 bn revenue industry expectation by 2020, the automobile segment can reach $300 bn by 2026 at a CAGR (Compound Annual Growth Rate) of 15%
India's rapidly growing 5 auto hubs have a significant potential to be used as a base for export to SEA and MENA regions
29.07 mn vehicles were manufactured in the country in FY18. During April 2018-January 2019, automobile production increased 9.84% year-on-year to reach 26.26 million vehicle units
The sub-sectors contribution to the overall market in 2017-18 is as follows:
Will changes in FDI norms lead to more employment??
Policy Watch - Review of FDI Policy - FDI India
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Cabinet decisions: 100?I in contract manufacturing under automatic route
The Big Picture - Wooing FDI - FDI India