Market Size (in $): $82billion

Market Size (in units): 24million

Rank: 7th Largest in the world, 7% of indias GDP
Composition:

Domestic Market Share FY16

Export Market Share FY16

14% 3%

18%
3%
11%

3%
68%

80%

Passenger Vehicles

Commercial Vehicles

Passenger Vehicles

Commercial Vehicles

Three Wheelers

Two Wheelers

Three Wheelers

Two Wheelers

Policy/Reforms :
1.

Recent government incentives to push electric vehicle (EV) sales, but a lot
more needs to be done for EVs to achieve meaningful volumes
INR7.95b budget allocation for the FAME-India scheme during FY1617

2.

Make in India, to help improve investment climate and boost automotive

production, ease of doing business, FDI and infrastructure development
164% growth in FDI in the automotive sector FDI since the launch of Make in India
3.
Introduction of GST, industry to benefit significantly through reduction in logistics
cost, efficiency in distribution, greater transparency and lower tax burden on vehicles
4.
New road transport and safety bill, to help drive
Faster clearances
Stricter road and vehicle safety norms (including crash tests)
Mandatory recalls
Drivers:
1. Low Vehicle penetration of 32 vehicles per 1000 people in 2015

Future Outlook:
Market Size to reach $300bn at a CAGR of 13% by FY26 with vehicle sales to touch
66million
Additional Investment, INR 4.5-5.5 trillion