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Jeet B Bhayani (SEBI RA)

14th May · SEBI-Registered Analyst

India's automobile sector is experiencing a significant investment phase, with top automotive manufacturers intending to allocate nearly Rs. in capital expenditure (capex). 40,000 crore (US$ 4.23 billion) due to increasing local demand, growing export prospects, and hastening the shift to electric vehicles (EVs). Industry estimates suggest that leading car manufacturers like Maruti Suzuki, Hyundai Motor India, Tata Motors, Mahindra & Mahindra, and Kia India are boosting investments in production capacity, electric vehicle manufacturing, local sourcing, and technological innovation. The drive for investment is fueled by robust demand for passenger and utility vehicles, alongside a growing emphasis on advanced mobility solutions and cleaner transportation technologies. Industry specialists observed that ongoing infrastructure development, increasing incomes, and enhanced consumer confidence are fostering prolonged growth in India’s automotive industry. Automobile manufacturers are increasing their investments in electric mobility, hybrid technologies, battery production, and research and development (R&D) to enhance their competitiveness in both local and international markets. Industry players emphasized that India is progressively becoming a significant manufacturing and export center for vehicles and automotive parts, driven by policy backing, enhanced supply chains, and expanding localization abilities. The government's programs, including the Production Linked Incentive (PLI) initiative and the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, have additionally stimulated investments throughout the automotive sector

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