Automobile manufacturing India sees sustained growth under Make in India push
New Delhi: Automobile manufacturing India recorded steady growth over the last five years, supported by rising production, higher exports and targeted policy measures under the Make in India programme, the Union government informed the Rajya Sabha on Thursday.
Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma shared the details in a written reply. He cited data from the Society of Indian Automobile Manufacturers and the Ministry of Commerce and Industry to outline sector-wise trends.
According to SIAM figures, passenger vehicle production rose from 3.06 million units in 2020–21 to 5.06 million units in 2024–25. Commercial vehicle output also increased during the period, while two-wheeler production grew from 18.35 million units to 23.88 million units. Three-wheeler production showed consistent growth as well.
Electric vehicle adoption expanded steadily across segments. Although comprehensive EV production data was not available, registration trends showed rising penetration. Electric three-wheelers recorded the highest share, increasing from 31.6% in 2020–21 to 57.3% in 2024–25. EV presence in passenger vehicles and two-wheelers also rose year-on-year.
Exports formed another key pillar of growth. Total automobile exports increased from 4.13 million units in 2020–21 to 5.36 million units in 2024–25. Passenger vehicle exports climbed steadily, while two-wheelers remained the largest export category by volume.
Automobile manufacturing India boosted by exports and EV policies
Export value data showed strong demand in global markets. Passenger vehicle exports grew across destinations such as South Africa, Saudi Arabia, Mexico and Japan. Commercial vehicles found markets in Saudi Arabia, South Africa, Indonesia and the UAE. Three-wheelers and two-wheelers also saw diversified export destinations across Africa, Latin America and Asia.
Auto component exports rose consistently during the five-year period. According to ACMA data, total exports increased from USD 13.3 billion in 2020–21 to USD 22.9 billion in 2024–25. The United States, Germany and Mexico remained major markets.
To support future growth, the Ministry of Heavy Industries rolled out multiple incentive schemes. The Production Linked Incentive scheme for automobiles and auto components, approved in 2021 with an outlay of ₹25,938 crore, aims to boost advanced automotive technology manufacturing with higher domestic value addition.
In addition, the government launched the PLI scheme for Advanced Chemistry Cell battery storage with a budget of ₹18,100 crore. The scheme targets the creation of 50 GWh domestic battery manufacturing capacity. Further, the Scheme for Promotion of Manufacturing of Electric Passenger Cars, notified in 2024, seeks to attract large investments and deepen localisation.
The minister said these measures strengthened domestic capabilities, reduced import dependence and positioned India as a competitive automotive manufacturing hub.
