India's auto sector powers $5 trillion economy dream with record growth in EVs, exports, jobs

AS India moves closer to achieving its $5 trillion economy dream, the automobile sector is emerging as a strong pillar of growth by contributing around 7.1 per cent to the country's GDP and nearly 49 per cent to its manufacturing GDP.

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Additionally, it supports over 3.7 crore jobs and accounts for close to 8 per cent of India’s total exports.

Clearly, the performance of this sector is closely linked to the overall economic growth of the country.

More than just a commercial industry, the auto sector is now seen as a reflection of India's growing power in global manufacturing and innovation.

As of the financial year 2024-25, India is the third-largest automobile market in the world by sales and the fourth-largest in terms of production.

The country produced over 31 million vehicles across various segments. This included more than 5 million passenger cars, 1 million commercial vehicles, 1 million three-wheelers, and nearly 24 million two-wheelers.

In terms of exports, India shipped around 5.7 million vehicles to markets like Japan, Mexico, Latin America, and Africa.