Promoting India’s deeper integration into the global value chain, the country’s automotive industry serves as a pillar of manufacturing and economic growth, contributing 7.1% to India’s GDP and 49% to manufacturing GDP.
India – The World’s Fourth-Largest Automotive Producer
As the fourth-largest automobile manufacturer globally, India possesses the scale, depth, and strategic capacity to emerge as a global leader in the automotive value chain.
The sector encompasses an extensive ecosystem — from vehicle assembly and component manufacturing to linkages with critical industries such as steel, electronics, rubber, information technology, and logistics.
Accelerated Growth and Innovation
In recent years, India’s vehicle production has expanded exponentially, with over 28 million units produced in 2023–2024 alone.
The industry’s contribution extends far beyond industrial output: it supports millions of direct and indirect jobs, fosters technological innovation, and plays a central role in India’s transition toward green mobility, industrial ambition, and trade strategy.
Despite its robust manufacturing base, India currently holds only 3% of global auto component trade, indicating significant room for expansion in