Make-in-India push provided a power boost to local auto industry, says govt

The total production of vehicles in the country has zoomed to 28 million in 2023-24 from 2 million in 1991-92, when the economy was liberalised by the then government

India’s automobile sector has ‘transformed’ significantly in the last few years, driven by Centre’s make-in-India push, a government statement said on March 25.

The government’s local manufacturing initiative has also charged up the electric vehicles segment, the statement added. The EV sector has grown rapidly with 4.4 million e-cars registered by August 2024, reaching a market penetration of 6.6 percent, according to the government.

“Over the past decade, policy reforms, fiscal incentives, and infrastructure development have positioned India as a key global automotive hub,” the government statement claimed.

This has led to substantial investments, innovation and increased localization, contributing to economic growth and sustainability, it added.

The total production of vehicles in the country has zoomed to 28 million in 2023-24 from 2 million in 1991-92, when the Congress-led government had liberalized the economy, allowing 100 percent foreign direct investment in the automobile sector.

The turnover of the auto industry has jumped to $240 billion, providing 30 million direct and indirect jobs, the government claimed, adding that the country is exporting vehicles and auto components worth $35 billion.

India now has become the largest manufacturer of three-wheelers. It is also among the top two manufacturers of two-wheelers globally and among the top 4 makers of passengers vehicles.

The auto components industry has also become a major contributor to the economy, with a share of 2.3 percent in the GDP and a direct employment of 1.5 million.