The Indian vehicle sector has grown right into a ₹8.7 lakh-crore ($108 billion) industry by producing 2.7 crore automobiles in FY23, administration consulting agency Primus Partners mentioned in a report.
Considering the manufacturing volumes, India ranks third in passenger automobiles (PV) and first in two-wheelers globally, the agency mentioned.
Primus Partners mentioned the PV section grew to ₹5 lakh crore in FY23 and half of the income got here from mid and full measurement SUVs.
It mentioned the auto industry registered an employment determine of over 1.9 crore, thus occupying paramount significance in the financial system.
As per the report, whereas electrification has progressed nicely in two- and three-wheelers, it’s nonetheless nascent in contrast with many nations.
“As per our study, the Indian market is bypassing the lower priced products and more value is being created in feature rich higher priced vehicles,” mentioned Anurag Singh, Managing Director, Primus Partners. “We believe that the value growth is happening faster than volume growth,” he added.
According to the examine, passenger automobiles accounted for the most important worth share at 58%, whereas two wheelers accounted for the most important quantity share at 77%.
“Passenger vehicles produced ₹5 lakh crore value. The mid size and full size SUVs sub segments accounted for over half of the value. The compact sub segment is also important and created 25% of value. The luxury vehicles contributed to ₹63,000 crore in value, or 13% of the segment,” the agency mentioned in the report.
“People are not preferring the cheaper ‘mini’ cars and sedans and they have low share in value. The key manufacturers in this segment are Maruti, Hyundai, Tata, Mahindra, Kia, Toyota, VW and Honda,” it mentioned.
India produced greater than 10 lakh industrial automobiles starting from a small four-wheel service with lower than 2-ton capability to giant tractor trailers and specialty automobiles like tippers.
The industrial automobiles class, producing greater than ₹1.7 lakh crore, accounted for 4% of quantity and 19% of worth.
The key producers in this section are Tata Ashok Leyland, Eicher, and BharatBenz.
As per the report, India retained the primary place in two-wheeler manufacturing, carefully matched by China.
“Over 20 million two-wheelers were produced during 2022-23 accounting for 77% of the volume share. The overall segment accounted for ₹1.8 lakh crore amounting to 21% of value,” the agency mentioned.
The key producers in this section are Hero Motocorp, Honda Scooters, Bajaj and TVS.
