11 Interesting facts of Indian Automobile Industry

India is one of the leading exporters of automobiles, growing 14.50% during FY19 and was expected to grow at a CAGR of 3.05% during the time period from 2016 to 2026.

An interesting fact about the automobile industry is that the Government of India (GOI) and the major automobile partakers were expected to make India a leader. As in the automobile market of two-wheelers and four-wheelers market in the world by 2020, as asserted before the pandemic.

In 2018, the Indian automobile industry was the seventh-largest manufacturer of commercial vehicles.

Growing largely to become the fourth-largest auto market in with sales increasing 8.3 per cent year-on-year to 3.99 million units ( Source : IBEF). The growth of the sector was boosted further by the companies with their interest in exploring the rural markets.

According to the ‘Society of Indian Automobile Manufacturers’ exports have been doubled and India also gives away genuine car spare parts to be utilized in the International market.

Facts about Indian Automobile Industry

  • Over the years Indian manufacturers of automobile components have greatly evolved their manufacturing abilities. Expanding them even more from before which has enabled them in keeping the control of quality with low costs.

  • Manufacturers are required to deliver the quality automobile components that are meeting with the regulations. This happens in different countries with low cost and delivery as the competition in the global market is intense. Reducing product cycles and regular launches keep the manufacturers ready for any eventuality, which is a challenging automotive industry facts.
  • The Director-General of ‘Automotive Component Manufacturers Association’ (ACMA) Mr. Vinnie Mehta. He expressed that, ‘the Automobile industry is uplifted by the exposure to the global procedures and the culture of work because of business with Japan and Europe, who are the top manufacturers in this industry’. He also stated that ‘The export is the edge of Indian Automobile Industry and it is capable of exporting accurate engineering and machine parts.’
  • The auto industry currently contributes 18% of the country’s entire excise revenue is contributed by the Automobile Industry. With every purchase of an automobile approximate from 40% to 70% of the earnings go to the government in the form of various taxes. The taxes going depends on the type of automobile being purchased. The automotive sector also generates revenue by the selling of spare parts of automobiles of prominent Indian multinational automotive manufacturing company like Tata Motors. Check availability of Tata Motors parts online.
  • Overall domestic Automobiles sales have been improved at 6.71% CAGR between FY13-19 with 26.27 million vehicles getting sold in FY19 overall domestically. Also, the production increased at 6.96% CAGR between FY13-19 with 30.92 million vehicles manufactured in the country in FY19. In the comparison of previous growth, the domestic sales in FY19 among all the sectors were recorded in commercial vehicles at 17.55% followed by 10.27% in the sales of three-wheelers, a significant automobile fact.

  • The automotive sector has generated employment for 1.3 million people (as of 2017) both directly and indirectly. Some of the other interesting automobiles facts are that:
    The automotive industry contributes 25% of the total manufacturing GDP. There are 16 passenger vehicles per 1000 people in India with only 85 people having two-wheelers on every 1000 individuals.
  • Other independent sectors have scaled up sharply their purchase of components which has helped them reduce prices significantly in India. Check availability of Mahindra Genuine Parts
  • Exports by Indian Automotive Sectors grew 14.50% more than the previous year during FY19. While overall export increased by 3.9% during the months from April to December 2019. The sales of electric two-wheelers have been estimated to have crossed about 55,000 vehicles in 2017-18.
  • Seven-fold jump in domestic sales in India of the premium motorbike has recorded, reaching 13,982 units during the months from April to September 2019 while the sale of luxury cars stood between 15,000 to 17,000 in the first six months of 2019.
  • Government has also taken initiatives in the automotive sectors and under Union Budget of 2019-20 has announced to provide additional income tax deduction of 1.5 lakh (US$ 2,146) on the interest paid on the loans taken to purchase electric vehicles, aiming to develop India as a global manufacturing centre and an R&D hub. There is also a plan to set up R&D centres at a total cost of US$ 388.5 million to enable the industry to be on par with global standards.
  • The Ministry of Heavy Industries (GOI) has shortlisted 11 cities in the country to introduce public transport system of Electric Vehicles under Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME). Incubation centre for start-ups working in electric vehicles space will be also set up by the Government of India. GOI approved a fund requirement of 1 Crore in February 2019 for the scheme of FAME – II.


By various factors like availability of skilled labour at low cost, robust R&D centres and low-cost steel production. The automobile industry is substantiated. This sector also provides considerable chances for investment and direct and indirect employment to skilled and unskilled labour.

By 2016, the Indian automotive industry (including component manufacturing) is expected to reach a fortune of 16.16-18.18 trillion (US$ 251.4-282.8 billion).

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