Automotive components industry size India FY 2008-2024
India's automotive components industry was around 74 billion U.S. dollars at the end of fiscal year 2024. It was an increase of 9.8 percent in comparison with the previous year. The huge drop in the market size in the financial year 2020 and the further decrease in 2021 were due to the lowered demand from the automotive industry in India. It was driven by a combination of factors, including disruption of the automotive industry caused by an economic slump, new emission standards, and the impact of the coronavirus pandemic.
Indian automotive industry
India is one of the biggest automotive manufacturers in the world. As of 2023, the country ranked third in terms of passenger vehicle production, just behind China and Japan. However, unlike China and Japan, most of the vehicles produced in India were two-wheelers. It is the largest producer of two-wheelers in the world and sold the majority of two-wheelers produced domestically in the same year. This market is dominated by Hero MotoCorp, an Indian motorcycle and scooter manufacturer based in Delhi.
Passenger vehicles production in India
Among the 4.9 million passenger vehicles produced in the country, most of them were sold domestically. Indian consumers prefer small and medium-sized cars, one of the reasons is that these cars make navigating the narrow streets of Indian cities easier. In recent years, electric vehicles have seen some strong development in the country. The Indian government introduced several policies to incentivize the domestic production of EVs and the development of EV charging infrastructure. As of 2023, the penetration rate of electric vehicles in India reached 6.4 percent, a huge improvement in comparison with just two years ago.
