LOOKING AT THE NUMBERS

The automotive industry is the heartbeat of the country’s manufacturing sector. Here is a birds-eye view of where we stand and the road map ahead.

- Kruti Bharadva

India became the fourth largest auto market in 2019, displacing Germany with about 3.99 million units sold in the passenger and commercial vehicles categories. India is expected to displace Japan as the third largest auto market by 2021.

The Indian automotive industry accounts for over 7 per cent of the country’s GDP and 22 per cent of the manufacturing GDP. The industry supports over a 3.7 crore workforce and with GST collections of around Rs 1,50,000 crore, it accounts for nearly 15 per cent of total GST collection of the country in a year. The auto sector is also one of the biggest recipients of foreign direct investment an: Between April 2000 and March 2020, the sector has received FDI amounting to $ 24.2 billion.

PRODUCTION, SALES AND EXPORTS

Domestic automobiles production increased at 2.36 per cent CAGR between FY16-20 with 26.36 million vehicles being manufactured in the country in FY20. The total production of Passenger vehicles, three wheelers, two-wheelers and quadricycles in the month of November 2020 was 22,96,701 units, as against 2,258,290 units in November 2019, marking a growth of 1.70 per cent.

Overall, automobile exports reached 4.77 million vehicles in FY20, growing at a CAGR of 6.94 per cent during FY16-FY20. Two wheelers made up 73.9 per cent of the vehicles exported, followed by passenger vehicles at 14.2 per cent, three wheelers at 10.5 per cent and commercial vehicles at 1.3 per cent.