Revolutionizing Mobility: The Make in India Auto Story

Created by Piyush Patel_ in Sector Update 27 Mar 2025

India is shifting gears in the automobile sector, and the journey is nothing short of historic. Since the launch of the Make in India initiative in 2014, the auto industry has transformed into a 🚀 global manufacturing hub, especially for electric vehicles (EVs).

📌 1. Sector Overview – India’s Auto Engine is Firing on All Cylinders

🔹 Contribution to GDP: ₹20 Lakh Crore industry = 💹 ~6% of India’s GDP

🔹 Employment Generated: 👷‍♂️ 30 million jobs (4.2M direct + 26.5M indirect)

🔹 Vehicle Production: 📈 From 2 million in 1991 ➡️ to 28 million in 2023

🔹 Export Boom: 🌍 4.5 million vehicles exported in FY24

🔹 FDI Inflows: 💸 $36 Billion in last 4 years

🚘 India’s Global Rank:

#1 in Three-Wheelers

#2 in Two-Wheelers

#4 in Passenger Vehicles

#5 in Commercial Vehicles

🔋 2. EV Revolution – India’s Green Drive is Gaining Speed

⚡ EV Registrations: 4.4 million EVs till Aug 2024

⚡ Market Penetration: 6.6% and rising

⚡ Charging Stations: 2,636 across 62 cities

⚡ GST Reduced: 📉 From 12% ➡️ 5% on EVs

⚡ Lithium Discovery: Found in Jammu & Kashmir – 🔋 A game changer for battery production

🏗️ 3. Strong Policy Support – Driving the Auto & EV Sector

📑 Major Government Schemes:

FAME India Phase-II 💰 ₹11,500 Cr – EV subsidies & charging infra

PLI Scheme (Auto + Battery) 🏭 ₹25,938 Cr + ₹18,100 Cr

PM E-DRIVE Scheme 🚚 ₹10,900 Cr – EV trucks, ambulances, e-buses

EMPS 2024 ⚙️ ₹500 Cr – Targeting 2W & 3W EVs

SMEC 2024 🚗 ₹4,150 Cr – Electric car manufacturing with 50% local value

🏭 4. Auto Components Sector – The Backbone of Growth

🔧 GDP Contribution: 2.3%

👷‍♀️ Jobs: 1.5 million direct employment

📦 Turnover FY24: ₹6.14 Lakh Crore (US$ 74.1 billion)

🌍 Exports FY24: $21.2 Billion | Target by 2026: $30 Billion

🔄 Import Reduction: 5.8% in 2 years – More localization

📊 Growth Rate: 8.63% CAGR (FY16–FY24)

🏢 5. Company Moves – Industry Giants Accelerate Investment

🚗 Hyundai: Investing ₹33,200 Cr for expansion

🚗 Mercedes-Benz: Committed ₹3,000 Cr

🚗 Toyota: ₹20,000 Cr for EV production

🚗 Skoda Auto & Maruti Suzuki: Exporting 30% of production

These global majors see India not just as a market, but as an export and innovation hub.

💼 6. Investor Advantage – Why This Sector is a Golden Opportunity?

🔹 Early Entry into EV Boom

→ 📈 113.99 Billion EV market potential by 2029

→ 🔋 Battery manufacturing & supply chain stocks set to benefit

🔹 Auto Ancillary Growth

→ Export-focused, efficient companies will grow with global demand

→ Look for engine components, electronics, drive trains manufacturers

🔹 FDI & Policy Tailwind

→ Continued government incentives = Stability for long-term investors

→ Reduced GST, export benefits & localization push = better margins

🔹 Global + Local Opportunity

→ Play both India’s domestic demand + rising exports = 💹 Dual growth strategy

📊 Summary Table – Fast Facts for Investors

📌 Metric	📈 Value
Auto Sector GDP Share	6% of India’s GDP
Auto Component Export FY24	$21.2 Billion
EV Market Penetration	6.6% (4.4 Million EVs Registered)
Total Jobs Supported	30 Million (Direct + Indirect)
Growth of Auto Component Sector	8.63% CAGR (FY16–FY24)
EV Sector Forecast	$113.99 Billion by 2029

⚠️ Disclaimer

This blog is intended for informational purposes only. It does not constitute financial advice or recommendations. Please consult a professional advisor before investing. Investments in stock markets are subject to market risks.