India's auto sector powers $5 trillion economy

EVs in India are steadily growing. In 2024-25, EVs made up over 6 per cent of all vehicles sold, with two-wheelers and three-wheelers leading the trend

- INDO-ASIAN NEWS SERVICE

As India moves closer to achieving its $5 trillion economy dream, the automobile sector is emerging asa 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.

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 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.