India is roaring ahead as an automotive powerhouse, producing millions of vehicles each year, and the latest FY23 statistics reveal an industry accelerating at full throttle.
Key Takeaways
- In FY23, India's passenger vehicle production stood at 4.46 million units, reflecting an 8.5% YoY growth driven by rising domestic demand
- Two-wheeler production in India reached 17.53 million units in FY23, accounting for 80% of total automotive output
- Commercial vehicle production grew to 0.97 million units in FY23, up 14.4% from FY22, led by medium and heavy trucks
- In FY23, India's passenger vehicle sales reached 4.44 million units, up 8.4% YoY amid SUV boom
- Two-wheeler domestic sales hit 13.82 million units in FY23, recovering 12% from FY22 dip
- Commercial vehicle sales grew to 9.4 lakh units in FY23, a 14.5% increase driven by infrastructure push
- India's automotive exports reached 4.6 million units in FY23, up 13% YoY
- Passenger vehicle exports grew 17% to 6.8 lakh units in FY23
- Two-wheeler exports hit 37 lakh units in FY23, 22% of production exported
- Automotive industry employs 37 million people directly and indirectly in India as of 2023
- Direct employment in auto manufacturing 3.5 million in FY23
- Auto component sector employs 1.2 million skilled workers across 5,000 SMEs
- Automotive turnover reached INR 15.5 lakh crore in FY23, 7.5% of GDP
- FDI inflows in auto sector USD 36.82 billion from April 2000 to Dec 2023
- PLI scheme for auto allocated INR 25,938 crore, attracting INR 43,000 crore investments by 2023
India's automotive industry grew robustly in 2023, driven by rising domestic demand and strong production across all vehicle segments.
Employment and Human Resources
- Automotive industry employs 37 million people directly and indirectly in India as of 2023
- Direct employment in auto manufacturing 3.5 million in FY23
- Auto component sector employs 1.2 million skilled workers across 5,000 SMEs
- Women workforce in auto industry rose to 12% in 2023 from 5% in 2018
- Skill India trained 2 lakh auto sector workers in EV technologies by 2023
- Maruti Suzuki employs 18,000 directly, with 50,000 indirect jobs in FY23
- Tata Motors workforce 75,000 employees across India in 2023
- Hero MotoCorp has 7,000 direct employees and 20,000 dealers
- Labour productivity in Indian auto sector USD 12,000 per worker in FY23
- 1.5 million jobs created in auto sector post-COVID recovery by FY23
- Dealer network employs 1.2 million people, per FADA 2023 data
- EV manufacturing to create 5 million jobs by 2030, projected from 2023 baseline
- Average wage in auto manufacturing INR 25,000/month in 2023
- 30% of auto jobs require engineering degrees, up from 20% in 2018
- Hyundai India employs 12,000 workers in Chennai plant
- Mahindra & Mahindra has 25,000 auto division employees
- Logistics and supply chain jobs 5 million in auto ecosystem 2023
- R&D engineers in auto sector 1 lakh, with 20% PhDs
- Youth employment (18-25) 40% of auto workforce in 2023
- Contract workers 55% of total auto manufacturing workforce FY23
- Automotive FDI created 2.5 million jobs since 2000 till 2023
- Auto retail salespersons 8 lakh nationwide in 2023
- Training academies trained 50,000 apprentices in auto skills 2023
Employment and Human Resources Interpretation
While India's auto industry heart still beats on the shop floor, employing millions directly and indirectly, its brain is increasingly powered by engineers, skilled tech workers, and a growing diversity of talent, all steering the sector toward an electric and more productive future.
Exports and Global Trade
- India's automotive exports reached 4.6 million units in FY23, up 13% YoY
- Passenger vehicle exports grew 17% to 6.8 lakh units in FY23
- Two-wheeler exports hit 37 lakh units in FY23, 22% of production exported
- Commercial vehicle exports reached 63,700 units in FY23, up 44% YoY to Africa and SAARC
- Auto component exports value USD 18.7 billion in FY23, up 12.4%
- Tractor exports from India were 85,000 units in FY23, up 19%
- Maruti Suzuki exported 2.11 lakh units in FY23 to 100+ countries
- Hyundai exported 1.37 lakh vehicles from India in CY2023
- Tata Motors exported 1.2 lakh vehicles in FY23, mainly to UK and SAARC
- Mahindra exported 45,000 vehicles in FY23, SUVs to South Africa and Australia
- Kia India exported 2.79 lakh units in 2023, 90% of production
- Hero MotoCorp exported 8.5 lakh two-wheelers in FY23 to 50 countries
- Bajaj Auto exports 20 lakh units annually, 40% of sales in FY23
- Top export destinations: US (15%), Mexico (10%), UK (8%) for auto components FY23
- India's share in global auto exports is 0.7% by volume but growing at 15% CAGR
- EV exports from India reached 50,000 units in FY23, mainly 2W and 3W
- Three-wheeler exports 50,000 units in FY23 to Latin America
- Bus exports 7,000 units in FY23
- Motorcycle exports 28 lakh units in FY23
- Scooter exports 9 lakh units in FY23
- Auto imports value USD 21.1 billion in FY23, up 35%, mainly electronics
- CKD imports for assembly 2.5 lakh units in FY23
Exports and Global Trade Interpretation
India's auto industry is roaring to life, not just on its own congested roads but across continents, as it shifts from a colossal domestic market into a formidable global exporter of everything from rugged SUVs to essential components, cleverly navigating a trade deficit by sending out millions more finished vehicles than it brings in, all while quietly planting the seeds for an electric future.
Investments and Government Policies
- Automotive turnover reached INR 15.5 lakh crore in FY23, 7.5% of GDP
- FDI inflows in auto sector USD 36.82 billion from April 2000 to Dec 2023
- PLI scheme for auto allocated INR 25,938 crore, attracting INR 43,000 crore investments by 2023
- INR 1.3 lakh crore invested in new EV manufacturing plants announced 2022-23
- Maruti Suzuki invested INR 33,000 crore for 4 million capacity expansion by 2030
- Tata Group pledged INR 1 lakh crore for semiconductor and EV ecosystem till 2027 from 2023
- Hyundai committed USD 4 billion more for India till 2030, announced 2023
- FAME-II scheme disbursed INR 3,000 crore subsidies till 2023
- Auto component PLI attracted 23 applications worth INR 7,200 crore by 2023
- Government R&D spend on auto INR 2,500 crore in FY23
- NATRiP centers invested INR 1,200 crore for testing infra till 2023
- State incentives attracted INR 50,000 crore in Tamil Nadu auto parks 2023
- Gujarat auto policy 2020-25 offers 20% capital subsidy, drawing INR 20,000 crore
- Maharashtra EV policy 2023 approved INR 1,800 crore incentives
- Private equity investments in auto startups USD 2.5 billion in 2023
- Battery manufacturing investments INR 40,000 crore announced 2023
- Semiconductor policy to support auto with INR 76,000 crore incentives, 2023
- GST on EVs reduced to 5% from 12% in 2023 budget
- Road infrastructure budget INR 2.7 lakh crore in 2023 boosting auto demand
Investments and Government Policies Interpretation
India's automotive industry is revving up to become the global powerhouse of tomorrow, with a roaring ₹1.5 lakh crore contribution to the economy, massive domestic and international investments pouring into everything from semiconductors to EVs, and a government firmly in the driver's seat with incentives and infrastructure to fuel this unprecedented growth.
Production and Manufacturing
- In FY23, India's passenger vehicle production stood at 4.46 million units, reflecting an 8.5% YoY growth driven by rising domestic demand
- Two-wheeler production in India reached 17.53 million units in FY23, accounting for 80% of total automotive output
- Commercial vehicle production grew to 0.97 million units in FY23, up 14.4% from FY22, led by medium and heavy trucks
- India's tractor production hit 9.19 lakh units in FY23, with a CAGR of 7.8% over the last 5 years
- Maruti Suzuki produced 1.81 million vehicles in FY23 from its plants in Gujarat and Haryana
- Tata Motors' passenger vehicle output reached 4.30 lakh units in FY23, focusing on EVs and SUVs
- Hero MotoCorp manufactured 58.25 lakh two-wheelers in FY23 across its six plants
- Mahindra & Mahindra's SUV production surged 44% to 3.70 lakh units in FY23
- Installed capacity for passenger vehicles in India is 5.82 million units annually as of 2023
- Two-wheeler production capacity stands at 27.5 million units per year in India
- India's auto component production value reached USD 74.5 billion in FY23, up 15% YoY
- Over 800 auto component manufacturing units operate in India, producing 35,000+ components
- Three-wheeler production in FY23 was 6.11 lakh units, growing 36% YoY
- Hyundai India produced 7.73 lakh vehicles in CY2023 from its Chennai plant
- Kia India manufactured 3.11 lakh units in 2023, with 90% exported
- India's EV production reached 1.5 million units in FY24 Q1, up 50% YoY
- Passenger car production capacity utilization was 76% in FY23
- Bajaj Auto produced 4.81 million two-wheelers in FY23
- Ashok Leyland's truck production hit 1.78 lakh units in FY23
- Eicher Motors produced 88,200 commercial vehicles in FY23
- TVS Motor Company output was 38.46 lakh units in FY23
- India's quadricycle production was 12,000 units in FY23
- OEMs invested INR 25,000 crore in new manufacturing plants in 2022-23
- India's automotive manufacturing contributes 7.1% to national GDP in FY23
- Steel consumption in auto production was 16.5 MT in FY23
- Aluminium usage in vehicles reached 500,000 tonnes in FY23 production
- Plastic components production for autos hit 2.5 million tonnes in FY23
- India's bus production was 3.9 lakh units in FY23
- Scooter production grew 20% to 6.2 million units in FY23
- Motorcycle output was 11.3 million units in FY23
Production and Manufacturing Interpretation
India's auto industry reveals a nation obsessed with two-wheeled agility, yet increasingly flexing with SUVs, EVs, and heavy trucks, all while somehow still having room in the garage for nearly 20 million new vehicles a year.
Sales and Domestic Market
- In FY23, India's passenger vehicle sales reached 4.44 million units, up 8.4% YoY amid SUV boom
- Two-wheeler domestic sales hit 13.82 million units in FY23, recovering 12% from FY22 dip
- Commercial vehicle sales grew to 9.4 lakh units in FY23, a 14.5% increase driven by infrastructure push
- Tractor sales in India reached 8.9 lakh units in FY23, down 8% due to erratic monsoons
- Maruti Suzuki sold 19.4 lakh vehicles domestically in FY23, holding 42% PV market share
- Hyundai Motor India domestic sales were 5.76 lakh units in FY23
- Tata Motors PV sales reached 5.44 lakh units in FY23, up 35% with Nexon leading
- Hero MotoCorp domestic two-wheeler sales were 50.15 lakh units in FY23
- Mahindra sold 3.31 lakh SUVs in FY23, up 46%, dominating under INR 15 lakh segment
- Passenger car sales (sedans+hatchbacks) fell to 9.5 lakh units in FY23, down 5%
- SUV sales surged to 19.9 lakh units in FY23, 45% of PV market
- Electric vehicle sales reached 1.4 million units in FY23, up 25% YoY
- Two-wheeler EV sales were 8.5 lakh units in FY23, 6% of total 2W sales
- Three-wheeler sales hit 5.6 lakh units in FY23, up 38%
- Bajaj Auto domestic sales 35.8 lakh units in FY23
- TVS Motor domestic sales 29.89 lakh units in FY23
- Royal Enfield sold 8.9 lakh motorcycles in FY23 domestically
- Passenger vehicle retail sales per FADA data were 41.7 lakh units in CY2023
- Used car sales reached 40 lakh units in CY2023, up 12%
- Scooter sales domestically 55 lakh units in FY23, up 18%
- Motorcycle domestic sales 79 lakh units in FY23
- Light commercial vehicle sales 5.8 lakh units in FY23
- MHCV sales grew 20% to 3.3 lakh units in FY23
Sales and Domestic Market Interpretation
While SUVs are being devoured like popcorn at the cinema, sedans are nursing a quiet existential crisis, tractors are parched, two-wheelers are back with a vengeance, and the entire nation is collectively deciding that the best way to build infrastructure is to first buy enough trucks to clog it.
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