Revving up into high gear, the Indian automobile industry painted FY23 in broad strokes of remarkable growth, with nearly every segment—from passenger vehicles and two-wheelers to commercial vehicles and three-wheelers—posting double-digit production increases that collectively underscore its accelerating momentum on the global stage.
Key Takeaways
- In FY23, India's passenger vehicle production reached 4.46 million units, marking a 19.1% YoY growth
- Two-wheeler production in India hit 17.53 million units in FY23, up 18.5% from FY22
- Commercial vehicle production stood at 0.85 million units in FY23, growing 24.4% YoY
- Passenger vehicle sales in India reached 3.89 million units in FY23, growing 23.5% YoY
- Two-wheeler domestic sales were 13.74 million units in FY23, up 11.5% YoY
- Commercial vehicle sales hit 0.76 million units in FY23, a 31.4% YoY rise
- India's auto exports reached 4.68 million units in FY23, up 35.1% YoY
- Passenger vehicle exports grew to 0.68 million units in FY23, a 83.9% YoY increase
- Two-wheeler exports hit 3.02 million units in FY23, up 41.2% YoY
- Automobile industry employs over 37 million people directly and indirectly as of 2023
- Auto sector contributes 7.1% to India's GDP in FY23
- FDI inflows into auto sector reached $34.6 billion cumulatively till FY23
- PLI scheme for auto sector allocated INR 25,938 crore for 2021-2026
- EV production target set at 30% of total auto production by 2030
- FAME-II scheme disbursed INR 3,000 crore subsidies till 2023
India's automobile industry grew strongly across all vehicle segments and exports in FY23.
Employment and Investments
- Automobile industry employs over 37 million people directly and indirectly as of 2023
- Auto sector contributes 7.1% to India's GDP in FY23
- FDI inflows into auto sector reached $34.6 billion cumulatively till FY23
- Over 1.5 million direct jobs in auto manufacturing as of 2023
- R&D investment in auto industry was INR 25,000 crore in FY23
- Auto industry attracted $31 billion FDI from 2000-2023
- 3.5 lakh MSMEs support auto sector, employing 5 million
- Skill India trained 2 lakh auto workers by 2023
- Tata Motors invested INR 36,000 crore in EVs by 2025
- Mahindra's capex at INR 17,000 crore for FY24-27
- Auto cluster in TN employs 1.2 mn people
- Hyundai India invested $4 bn cumulatively by 2024
- Kia India capex INR 8,000 cr for expansions
- Women workforce in auto up to 15% by 2025 target
- Maruti Suzuki skill centers trained 50,000 youth by 2024
- Pune auto cluster employs 8 lakh direct jobs
- MG Motor India invested INR 7,000 cr by 2024
- Auto ancillary turnover INR 6.5 lakh cr FY23
- 1,200 auto component manufacturers in India
- Toyota Kirloskar invested INR 16,000 cr in TN plant
Employment and Investments Interpretation
India's auto industry isn't just building cars; it's single-handedly driving the nation's employment, GDP, and global ambitions, all while frantically retooling for an electric future on the back of a colossal and skilled workforce.
Exports and Imports
- India's auto exports reached 4.68 million units in FY23, up 35.1% YoY
- Passenger vehicle exports grew to 0.68 million units in FY23, a 83.9% YoY increase
- Two-wheeler exports hit 3.02 million units in FY23, up 41.2% YoY
- Commercial vehicle exports reached 0.47 million units in FY23, growing 76.2% YoY
- Auto component exports from India were $18.8 billion in FY23, up 15.8% YoY
- Auto exports grew 16% to 48.39 lakh units in FY24
- PV exports up 26.2% to 3.12 lakh units in Q1 FY25
- Engine exports from India reached $1.2 billion in FY23
- Auto imports were $16.5 billion in FY23
- Body parts imports stood at $2.8 billion in FY23
- Exports to Africa up 40% to 5 lakh units FY24
- Latin America auto exports $2.5 bn FY23
- Tyre exports from India $2.4 bn in FY23
- Gear box imports $1.1 bn FY23
- EV component imports $500 mn FY23
- US auto exports from India $1 bn FY23
- Electrical parts exports $3.2 bn FY23
- Chassis imports $800 mn FY23
- Transmission imports down 10% to $900 mn FY23
- Forging imports $1.5 bn FY23
Exports and Imports Interpretation
India is firing on all cylinders to become the world's garage, exporting vehicles and components at a breakneck pace, yet its own chassis still hums to the tune of significant imports, revealing a complex engine of global trade.
Policy and Projections
- PLI scheme for auto sector allocated INR 25,938 crore for 2021-2026
- EV production target set at 30% of total auto production by 2030
- FAME-II scheme disbursed INR 3,000 crore subsidies till 2023
- Indian auto market projected to reach $300 billion by 2026
- EV sales expected to hit 10 million units annually by 2030
- BS-VI norms implemented from April 2020, reducing emissions 70%
- Auto PLI approved 57 projects worth INR 74,850 crore by 2024
- India aims for $200 billion auto turnover by 2026
- CNG vehicle sales up 91% to 2.4 lakh units in FY24
- Ethanol blending target 20% by 2025
- Scrap policy to recycle 20 mn vehicles by 2025
- Auto market size $160 bn in FY24, CAGR 10% projected
- Hydrogen fuel cell policy notified 2023
- Gati Shakti for 100 auto corridors by 2025
- Flex fuel vehicle policy approved 2022
- India EV market to grow at 49% CAGR to 2030
Policy and Projections Interpretation
India is betting a mountain of rupees on a future where its roads are quieter and cleaner, but getting there requires a chaotic yet ambitious orchestra of subsidies, stricter rules, and a scramble for everything from ethanol to hydrogen, all while trying to recycle millions of old clunkers.
Production Statistics
- In FY23, India's passenger vehicle production reached 4.46 million units, marking a 19.1% YoY growth
- Two-wheeler production in India hit 17.53 million units in FY23, up 18.5% from FY22
- Commercial vehicle production stood at 0.85 million units in FY23, growing 24.4% YoY
- Three-wheeler production reached 0.61 million units in FY23, a 62.5% increase YoY
- Tractor production in India was 0.94 million units in FY23, up 14.8% YoY
- Passenger vehicle production was 25.06 lakh units in April 2024, up 15.4% YoY
- Two-wheeler production reached 1.96 crore units in FY24, up 13.3% YoY
- CV production stood at 8.18 lakh units in FY24, growing 3.3% YoY
- Three-wheeler output hit 5.13 lakh units in FY24, up 57.2% YoY
- Quadricycle production was 2,500 units in FY23
- Total PV production capacity utilization at 75% in FY23
- Hero MotoCorp produced 58 lakh 2Ws in FY24
- Ashok Leyland CV production up 20% to 1.8 lakh units FY24
- Mahindra 3W production at 3.5 lakh units FY24
- Sonalika Tractors output 1.5 lakh units FY24
- Ola Electric 2W production ramped to 1 lakh/month by 2024
- CV production capacity 1.5 mn units by 2025
- Bajaj Auto 2W production 4.2 mn units FY24
- Tata Motors PV output 9.5 lakh FY24
- Eicher Tractor production 85,000 units FY24
- Piaggio 3W production 1.2 lakh FY24
- Escorts Kubota tractor output 85,000 FY24
- Two-wheeler production in Oct 2023: 19.01 lakh units, up 9.8%
Production Statistics Interpretation
India's roads are a grand traffic jam of progress, with a roaring stampede of two-wheelers leading the charge, a determined fleet of commercial vehicles hauling the economy, and a patient parade of tractors tilling the land, all while electric three-wheelers quietly plot their takeover from the rickshaw ranks.
Sales and Market Share
- Passenger vehicle sales in India reached 3.89 million units in FY23, growing 23.5% YoY
- Two-wheeler domestic sales were 13.74 million units in FY23, up 11.5% YoY
- Commercial vehicle sales hit 0.76 million units in FY23, a 31.4% YoY rise
- Passenger cars segment sales grew to 1.62 million units in FY23, up 12.4% YoY
- SUV sales in India surged to 1.87 million units in FY23, capturing 49.5% market share
- PV sales in Jan-May 2024 were 18.65 lakh units, up 6.1% YoY
- Two-wheeler sales reached 1.23 crore units in FY24, up 13.3% YoY
- Hatchback market share fell to 29.9% in FY24 from 47.7% in FY20
- Maruti Suzuki held 41.8% PV market share in FY24
- Hero MotoCorp led 2W market with 29.9% share in FY24
- MPV sales grew 15% to 2.5 lakh units FY24
- Royal Enfield premium bike sales 8.9 lakh units FY24
- TVS Motor 2W share 18.2% in FY24
- Eicher Motors CV sales up 25% FY24
- Scooter segment sales 4.2 million units FY24, 36% share of 2W
- Luxury car sales up 24% to 45,000 units FY24
- Bajaj Auto 2W sales 3.8 mn FY24
- Mahindra PV share 11.2% FY24
- LCV sales 5.5 lakh units FY24, up 5% YoY
- Electric 2W sales 1.15 mn FY24, 57% growth
- PV dispatches 3.48 lakh in Oct 2023, up 18.7%
Sales and Market Share Interpretation
India is shedding its humble hatchback skin and confidently suiting up, as the market now votes for SUVs with its wallet, electrifies its commute at a breakneck pace, and insists that even its two-wheelers and commercial trucks must grow as robustly as the economy they serve.
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