India’s auto industry races to be the third-largest by 2030

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New Delhi revs up its engines as the Indian government announces ambitious plans for its automotive sector. With a formidable array of initiatives, including the Rs 25,938 crore PLI for Automobile and Auto Components, India’s automotive industry is on track to secure the coveted third spot globally by 2030. Move over, auto giants—India is shifting gears and heading for the podium!

The Ministry of Heavy Industries (MHI) orchestrated a high-octane conference, which took place on 29th August 2023, where the Performance Review of the Production Linked Incentive – Auto Scheme was under the spotlight. Steering this powerhouse event is none other than Heavy Industries Minister Mahendra Nath Pandey. Buckle up; it’s going to be an exhilarating ride!

The focus of this turbocharged gathering? To dissect the wealth of opportunities presented by the PLI-Auto Scheme. MHI recognizes the pivotal role played by PLI-Auto applicants in the automotive sector’s journey toward greatness. Expect key stakeholders, PLI-Auto applicants, test agencies, and more to come together to share knowledge, and experiences, and tackle the roadblocks ahead.

The impact of these visionary schemes is poised to ripple across the automotive landscape, propelling the Indian auto industry to a lofty third place on the global stage by 2030. It’s not just a dream; it’s a roadmap to success.

MHI understands that achieving deep localization and the development of Advanced Automotive Technology (AAT) products on home turf hinges on the growth of the automotive industry. With strong links forward and backwards, this sector is a formidable driver of economic growth, contributing a substantial 7.1% to the national GDP—a remarkable ascent from 2.77% in 1992-93. Over 19 million people are directly and indirectly employed by this automotive powerhouse.

In the bustling Indian automobile market, two-wheelers and passenger cars are kings, commanding a staggering 77% and 18% market share, respectively, in 2021-22. Small and mid-sized cars reign supreme in the passenger car segment, zipping through the streets and highways of India.

But that’s not all. India has its foot firmly on the accelerator, aiming to double the size of its auto industry to a whopping Rs 15 lakh crore by the end of 2024. The country has already seen an impressive FDI inflow of USD 33.77 billion in the sector from April 2000 to September 2022, making up approximately 5.48% of the total FDI inflows in India during the same period.

So, as India’s auto industry zooms toward its lofty global ranking and revs up its economic engine, it’s clear that the road ahead is paved with ambition, innovation, and a determination to secure a coveted spot on the international podium. Get ready for a thrilling ride into the future of Indian automotive excellence!

Data source: The Economic Times

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