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autos on the rise in India

India is now one of the world's largest auto manufacturers. The country's auto components industry is also booming.

Foreign carmakers have started investing heavily in the sector. Their cars and trucks are no longer just being assembled in India - they're being manufactured here. New plants are being built all the time to keep up with the demand.

In the southern Indian city of Chennai, German owned Daimler has a state of the art research and production plant spread over 400 acres. Chakan near Pune is also now a premier automotive hub. Carmakers from Mercedes Benz to Fiat are manufacturing here. They've all discovered that India is an efficient and cost-effective place to do business.

Nationwide more than three million cars were sold in 2015, according to Euromonitor. That's an increase of almost 5% over 2014, with sales this year expected to rise by 4.6%.

More Indians are buying cars than ever before and cars made in India are being exported overseas in record numbers.

Autos in india

India's automotive industry is the world's 5th largest accounting for 7.1% of national GDP.

India is expected to become the world's third-biggest car market by 2020.


Around 31% of the small cars sold globally are manufactured in India.



The growing middle class, cheaper fuel and lower interest rates are all fuelling the expansion.


As India also cements its reputation as a global car exporter, local and foreign carmakers, are ramping up production.

india: The World's Drivetrain

Indian automaker Tata Motors now owns one of the world's most recognizable car companies Jaguar Land Rover.

Mumbai headquartered Tata Motors now assembles the Jaguar XF in a factory near Pune. Previously the luxury saloon was imported fully built from the UK. However India offers the competitive edge. Auto parts and labor are cheap, but workers on high-tech assembly lines are skilled and efficient. As a result Jaguar Land Rover can offer the Jaguar XF at a competitive price, and is considering manufacturing its new SUV at its Pune plant as well.

America's Ford plans to manufacture two types of engines in India by 2017. The iconic Ford Mustang is now for sale in Delhi and Mumbai.

Betting big on india

Many other foreign carmakers are investing big in India.


Italy's Fiat will start production in Pune in 2017. Premium Italian motorcycle manufacturer MV Agusta will soon launch three new luxury bikes in India.


Japan's Isuzu Motors has inaugurated a $450 million manufacturing unit in Andhra Pradesh. Honda Motorcycle and Scooter India have opened the world's largest scooter plant in Gujarat. Nissan is discussing ways to bring electric and hybrid technologies to India.


Ford plans to manufacture two types of engines in India by 2017. The iconic Ford Mustang is now for sale in Delhi and Mumbai. General Motors will invest $1 billion in India by 2020. US-based Chrysler is increasing its investment in Maharashtra by more than $500 million.


Swedish electric carmaker Clean Motion will invest $10 million in India over the next three years.


Mercedes Benz has doubled its India assembly capacity to 20,000 units a year. German luxury carmaker BMW sources auto parts from India.


India is also investing abroad. Mahindra Two Wheelers, for example, is now a majority shareholder in France's Peugeot Motorcycles.

two wheelers

Two wheelers are ubiquitous in India. 16 million were sold in 2015, largely because they cost less than cars.


India is also Asia's largest manufacturer of tractors. Mahindra and Mahindra has been a household name in India for decades, but it's an increasingly recognized brand internationally, exporting to countries including China, North America and Australia - and now in partnership with China's third largest tractor producer, Yancheng.


Trucks are big business too. Czech Republic's Tatra now has a joint venture in India - focused on manufacturing military trucks for Indian and global markets.

India: the world's fastest growing auto market

India's automotive sector is expected to generate up to:

$300 billion in annual revenue by 2026

Contributing to over 12% of GDP

Creating 65 million additional jobs

every measure in place for a faster rollout

The Government encourages foreign investment in the automobile sector by allowing 100% FDI (Foreign Direct Investment) under an automatic route + subsidies for manufacturing electric and hybrid vehicles.

Where to build your plant


Why? Close to key ports, assisting the import and export of goods and raw materials. The auto-hub Pune is near India's largest container shipping port.

Tamil Nadu

Why? The nation's largest auto hub by revenue share, this state has a long tradition of auto-manufacturing involving pioneering companies using innovative technology.


Why? India's most important emerging new automobile hub - with a reputation for having one of the country's most favorable investment climates.


Why? With proximity to India's thriving capital city, Delhi, Haryana has been home to prominent auto and auto-component manufacturers for more than three decades. The country's largest carmaker Maruti Suzuki is based here.