Indian automotive industry has been often called as the ‘sunrise sector’ for the Indian economy. A robust automotive industry in India can help Indian economy from being an emerging nation to a developed one. Growth in Indian automobile sector gained momentum post liberalization, when many multi-nationals automobile OEMs entered in India and the industry has grown leaps and bounds since then.
India is one of the leading countries for manufacturing of vehicles and a growing automotive market. Ranked 6th in the world, it manufactures approximately 24 million vehicles of which 3.6 million vehicles are exported. India is the world’s number one market for two-wheelers, number three for the passenger car market, and number five for the commercial vehicle market.
As far as jobs go, it is estimated that the industry supports employment for 13 people per truck, 6 people per car, four per three-wheeler and one per two-wheelers manufactured in the country, across the value chain. Further, the total estimated employment is 32 million, directly and indirectly, which is approximately 2.4% of the total population.
Production of Two Wheelers, Passenger Vehicles, Commercial Vehicles and Three Wheelers reached 24.50 million, 4.03 million, 1.11 million, and 1.27 million in 2018-19. This huge manufacturing allows India to be a leading exporter of vehicles. Automotive exports are worth almost Rs 150,000 crores and translate to 8% of the overall commodity exports from India. Almost 19% of passenger vehicles, 11% of commercial vehicles, 37% of three-wheelers and 12% of two-wheelers produced in the country are exported across the globe to more than 150 countries.
Indo German Trade
This story is from the August 2019 edition of MOTORINDIA.
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This story is from the August 2019 edition of MOTORINDIA.
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Contributing more than 6% to the nation’s GDP as per reports in April 2021, the Indian automotive industry in its entirety provides employment to about ‘37 million people’.
