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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