Introduction to the Indian Automobile Industry in FY23 According to a comprehensive report, the Indian automobile industry experienced a remarkable production of 2.7 crore vehicles in FY23, reaching an astounding valuation of approximately USD 108 billion (INR 8.7-lakh crore). This massive achievement showcases the industry’s significant contribution to the country’s economy.
Transformative Changes and Value Study
The automobile industry is currently undergoing transformative changes driven by electrification, alternative green power trains, electronic components and software, autonomous driving, and shared mobility. In order to understand the industry’s value and its various segments, Primus Partners conducted an in-depth study. The findings shed light on the evolving landscape and opportunities within the Indian automobile sector.
Electrification Progress and Investment Efforts
While significant progress has been made in electrifying two-wheelers and three-wheelers, India still lags behind many leading countries. However, both the government and private sector have recognized the importance of electrification and are actively investing in the development of the value chain. Efforts are underway to construct new manufacturing facilities, enabling India to catch up swiftly with the global leaders in electric mobility.
Commercial Vehicle Segment and Comparison with China
The commercial vehicle segment, encompassing a diverse range from small 4-wheel carriers to large tractor trailers and specialty vehicles like tippers, accounted for 10 lakh vehicles and generated a value of INR 1.7-lakh crore in the previous fiscal year. Interestingly, China closely rivals India in two-wheeler production, with a staggering output of 20 million two-wheelers, representing 77% of the total volume share. These figures highlight the scale and competitiveness of the commercial vehicle and two-wheeler segments in both countries.
Passenger Vehicle Segment and Distribution of Value
Within the passenger vehicle segment, which holds a significant share in the overall industry, the valuation of INR 5-lakh crore indicates its substantial contribution to the total value. Mid-size and full-size SUVs have emerged as the primary drivers of value, accounting for more than half of the segment’s worth. Additionally, the compact sub-segment holds a considerable 25% value share, while luxury vehicles contribute INR 63,000 crore, representing 13% of the passenger vehicle segment’s value. On the other hand, smaller “Mini” cars and sedans have a comparatively lower share in terms of value.
Electrification Progress in Two-wheeler and Three-wheeler Segments
The report highlights the significant progress made in electrification within the two-wheeler and three-wheeler segments of the Indian automobile industry. Although the country still trails behind leading nations such as China, the United States, and the European Union in electric vehicle adoption, India has witnessed substantial investments and initiatives in this domain. These efforts indicate a promising future for the growth and expansion of the electric vehicle segment in the coming years.
The Future of the Indian EV Industry
With the combination of government support, private sector investments, and technological advancements, the Indian electric vehicle industry is poised for significant growth in the near future. While challenges remain, the substantial commitment to electrification and the establishment of a robust ecosystem are paving the way for India to become a prominent player in the global electric mobility landscape. The industry is expected to witness accelerated adoption and
As the Indian automobile industry moves forward, it is crucial to acknowledge the dynamic nature of the sector. The report by Primus Partners serves as a valuable resource for understanding the industry’s current state and identifying opportunities for future growth. It emphasizes the importance of staying abreast of emerging trends, such as electrification, autonomous driving, and shared mobility, which are reshaping the landscape and presenting new possibilities for innovation and market expansion.
Furthermore, the report underlines the need for collaboration between industry stakeholders, policymakers, and technology providers to create an enabling environment for the sustainable growth of the automobile sector. This entails fostering research and development, promoting investments in clean energy solutions, and implementing supportive policies and regulations that incentivize the adoption of electric vehicles and other eco-friendly technologies.
