Indian Auto Components Industry: Electric Vehicles
From India to 160 countries. Impetus on the fast emerging EV paradigm with Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-India) Scheme, Automotive Mission Plan (AMP) 2016-26 and more. 360-degree ecosystem to support the components business. India is a compelling destination for automotive businesses.
India’s automobile industry is the world’s fourth largest by volume. India was the world’s fourth largest manufacturer of cars and seventh largest manufacturer of commercial vehicles in 2019. Domestic automobile production increased at 2.36% CAGR during FY16-FY20 and 26.36 million vehicles were manufactured in the country in FY20. Production of two wheelers, passenger vehicles, commercial vehicles and three wheelers reached 21.03 million, 3.43 million, 0.75 million, and 1.13 million, respectively, in FY20. In April-December 2019, 540,384 units of passenger vehicles were exported from India.
The domestic market consumption is also huge. In terms of volume, over 3.2 million auto units were sold in 2018 in India, however, post COVID the domestic market in calendar year 2020 is expected to contract to around 2.4-2.5 million units.