New Delhi: The Indian automobile industry has shifted into high gear, surpassing pre-pandemic production levels across most categories as the ‘Make in India’ campaign provides a significant tailwind for domestic manufacturing.
According to the latest data from the Society of Indian Automobile Manufacturers (SIAM), total production of passenger vehicles climbed to 5.06 million units in FY 2024-25, up from 3.06 million in FY 2020-21. The two-wheeler segment remains the largest by volume, with production reaching 23.88 million units in the same period.
The transition to green mobility is most visible in the three-wheeler segment, where electric vehicles (EVs) have achieved a dominant market share.
Three-Wheelers: EV registrations in this category jumped from 31.6% in FY 2020-21 to a staggering 57.3% in FY 2024-25.
Two-Wheelers: Electric two-wheelers saw their share grow from 0.3% to 6.1% over the last five years.
Passenger Vehicles: Though still in early stages, EV share in the passenger segment rose to 2.6% in FY 2024-25.
Indian-made vehicles are finding more takers globally, with total exports reaching 5.35 million units in FY 2024-25.
Two-Wheeler Exports: Led the charge with 4.19 million units shipped abroad.
Top Destinations: South Africa, Saudi Arabia, and Mexico emerged as the leading markets for Indian passenger vehicles, with exports to Japan seeing a sharp increase to $813 million.
Policy Boost: PLI Schemes Driving Investment
The Ministry of Heavy Industries continues to support this momentum through targeted Production Linked Incentive (PLI) schemes:
PLI-Auto: A ₹25,938 crore outlay focused on Advanced Automotive Technology (AAT) with a 50% domestic value addition requirement.
ACC Battery Storage: An ₹18,100 crore scheme aiming to establish a domestic manufacturing capacity of 50 GWh for advanced chemistry cell batteries.
Electric Passenger Cars: A new scheme notified in 2024 requires a minimum investment of ₹4,150 crore to promote local EV manufacturing.
”The government remains committed to making India a global manufacturing hub for the automotive sector, with a clear focus on sustainability and high domestic value addition,” stated Shri Bhupathiraju Srinivasa Varma, Minister of State for Heavy Industries, in a written reply to the Rajya Sabha.