Indian Automobile Industry Valued at $108 Billion in 2022-23: Report The industry is being reshaped due to unprecedented changes brought about by electrification / alternative green power trains, rise of electronic components and software, autonomous driving and shared mobility
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The automobile industry produced vehicles worth INR 8.7 lac crore in 2022-23, said a report by Primus Partners Pvt. Ltd. (Primus). India produced 2.7 crore vehicles and ranked third in passenger vehicles globally and topped the two-wheeler segment.
The industry is being reshaped due to unprecedented changes brought about by electrification / alternative green power trains, rise of electronic components and software, autonomous driving & shared mobility. It is important to understand the value, where it lies and how it will change.
While electrification has progressed well in two wheelers and three wheelers, it is still nascent compared to many countries. The government as well as the private sector are putting up massive investments & efforts to develop the value chain. A lot of factories are being constructed, and can expect to catch up very quickly with the leading countries.
"Our ground up study on automobile industry value is leading to a lot of insights, for example the Indian market is bypassing the lower priced products and more value is being created in feature rich higher priced vehicles. We believe that the value growth is happening faster than volume growth," said Anurag Singh, managing director, Primus Partners.
The passenger vehicles accounted for the largest value share at 58 per cent while two wheelers accounted for the largest volume share at 77 per cent. Passenger vehicles produced INR 5 lakh crore value. The mid size and full size SUVs sub segments accounted for over half of the value. The compact sub segment created 25 per cent of value. The luxury vehicles contributed to INR 63,000 crore in value, or 13 per cent of the segment. 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.
India produced over 10 lakh commercial vehicles ranging from a small four-wheel carrier with less than 2-ton capacity to large tractor trailers and specialty vehicles like tippers. The commercial vehicles category generates over INR 1.7 lac crore and accounts for 4 per cent of volume and 19 per cent of value. The key manufacturers in this segment are TATA, Ashok Leyland, Eicher, and BharatBenz.
Over 20 million two-wheelers were produced during 2022-23 accounting for 77 per cent of the volume share. The overall segment accounted for INR 1.8 lac crore amounting to 21 per cent of value. The key manufacturers in this segment are Hero Motocorp, Honda Scooters, Bajaj and TVS.
