The automotive industry had also showed signs of slight revival with positive trend in domestic sales in last few months. The second wave of the pandemic, however, has struck the industry hard. This report captures how the pandemic will be a learning lesson in self-survival. Despite a forcible pause, the industry will emerge stronger.
Key highlights of the report
- The Indian automobile industry is currently the fifth largest in the world but is very close to outpacing Japan to gain the fourth position
- Overall 7.1% contribution to the GDP by the industry
- The industry witnessed de-growth across segments- 4.13 million vehicles exported in FY21 compared with 4.74 million in FY20 | Leading mode of transport: Private vehicles | Leading vehicle category: Two-wheelers
- INR 57,042 crore (USD 7.81 billion) laid out for automobiles & auto components sector in Production Linked Incentive (PLI) scheme under the Department of Heavy Industries
- Voluntary vehicle scrappage policy to boost demand for new vehicles after removing old unfit vehicles - 30-40% reduction in cost with increased availability of scrapped materials such as steel, plastic, rubber and aluminium
- To accelerate EV purchase and consumption, e-charging kiosks will be set up by the government at around 69,000 petrol pumps across the country
- 2021 trends and beyond- USD 118 billion automobile industry is expected to reach USD 300 billion by 2026
With technological advancements and the upcoming automotive trends, the industry is shifting its focus toward platform-based services, with enhanced products for electrification and an increased level of automation.