Automobiles

The automobile industry is one of India's manufacturing pillars. Vehicle production rose from 2 million in 1991-92 to around 31 million in 2024-25 (Ministry of Heavy Industries), with nearly 33% growth from 2014-15 to 2024-25 (Economic Survey 2025-26). The Ministry describes India as the largest manufacturer of three-wheelers, among the top two makers of two-wheelers and among the top four makers of passenger and commercial vehicles.

The mix is changing fast: exports reached more than 53 lakh vehicles in 2024-25 (Economic Survey 2025-26), and electric vehicles are the new growth frontier, backed by FAME and PM E-DRIVE. The ₹25,938 crore auto PLI scheme and heavy investment by Maruti, Hyundai, Tata, Mahindra and new entrants like BYD are expanding capacity toward global-hub scale.

India is the world's largest market for two- and three-wheelers and the third-largest for passenger and commercial vehicles (Economic Survey 2025-26), built on a deep base of domestic and foreign carmakers (Maruti Suzuki, Tata, Mahindra, Hyundai) and a vast components industry. The state shapes the shift to electric with two levers: subsidies (FAME, now the PM E-Drive scheme) that cut the sticker price of EVs, and a PLI scheme that rewards making advanced vehicles and batteries at home.

The defining opportunity is the electric transition — EV sales are growing fast, led by two-wheelers and buses, where India is already among the world's largest markets. PLI for advanced-chemistry cells is bringing battery manufacturing onshore, the charging network is expanding along national highways, and the component industry is being supported through the shift.

~31 million vehicles produced (2024-25), up from 2 million in 1991-92; production up nearly 33% from 2014-15 to 2024-25. ~3 crore jobs, direct and indirect. 53 lakh+ vehicles exported (2024-25). Auto PLI ₹25,938 crore. Sources: Ministry of Heavy Industries Annual Report 2025-26, Economic Survey 2025-26.