HIGH PRIORITY MARKET - AUTOMOBILE
EXECUTIVE SUMMARY
Domestic Sales of Two wheelers is the most growing segment . The total domestic sales of two wheelers will grow from 16.0 million in 2015 to 50.60 to 55.5 million in 2026
CAGR : 11.03 %
> 50.6
Domestic Sales of Two wheelers in India is expected to increase at a CAGR of 11.03 % during 2015-26
Passenger Vehicles , Commercial Vehicles , Three Wheelers and Two Wheelers grew by 6.44 percent , 4.20 percent , 8.92 percent and 11.97 percent CAGR during 2010-15
CAGR : 2.77 %
> 4.86 |
3.6 |
|
|
2010 |
million |
2026 |
Automobile exports will grow at a CAGR of 2.77 % during 2015-26
Source : SIAM , ( National Electric Mobility Mission Plan ) NEMMP 2020 , TechSci Research ; Note : E – Estimate
FY 2015
Market size : USD74 billion
ADVANTAGE INDIA
Growing demand
• Strong growth in demand due to rising income , middle class , and a young population is likely to propel India among the world ’ s top five auto manufacturers by 2015
• Growth in export demand is set to accelerate
• Government takes Initiatives to set up manufacturing plants through Make in India
FY26E
Market size : USD260 to 300 billion
Innovation opportunities
• Tata Nano and the upcoming Pixel have opened up the potentially large ultra low-cost car segment
• Innovation is likely to intensify among engine technology and alternative fuels
Rising investments
• India has significant cost advantages ; auto firms save 10-25 per cent on operations vis-à-vis Europe and Latin America
• A large pool of skilled manpower and a growing technology base would induce greater investments
Policy support
• The government aims to develop India as a global manufacturing as well as R & D hub
• There has been a wide array of policy support in the form of sops , taxes and FDI encouragement
• The Automotive Mission Plan 2016-26 ( AMP 2026 ) targets a fourfold growth in the automotive industry .
Source : Automotive Mission Plan ( 2006 – 2026 ), Make in India Notes : R & D – Research and Development ; FDI – Foreign Direct Investment ; FY – Indian Financial Year ( April – March );
FY26E – Estimated figure for Financial Year 2026
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