INDIA'S AUTOMOBILE SECTOR SET TO ADD MORE FUEL TO INDIA'S GDP GROWTH
India is rapidly accelerating towards it's goal of becoming a $5 trillion economy. According to industry data for FY25, the auto sector contributes approx 7.1% of India's total GDP, and 49% to the manufacturing GDP. It also supports over 3.7 crore jobs and accounts for nearly 8% of India's total exports, underlying it's strategic role in the country's economic ecosystem. Moreover, the automobile sector has become a symbol of India's expanding power in global manufacturing and innovation.
With the rising demand for automobiles (both commercial vehicles and passenger vehicles), India has emerged as the 3rd largest automobile market by sales and 4th largest by production globally. In FY25, India produced over 31 million vehicles across all segments, which includes 5 million passenger cars, 1 million commercial vehicles, 1 million three-wheelers, and nearly 24 million two-wheelers. The export market is also gaining momentum with about 5.7 million vehicles shipped to countries like Japan, Mexico, Latin America, and Africa.
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