Indian auto sector wants to grow to US$ 300 billion by 2026

Experts estimate that by 2026, the fast-expanding Indian automobile market will have grown to a size of US$300 billion. Numerous reasons, such as urbanisation, rising income levels, and the expansion of the middle class with greater spending power, all contribute to this growth. This was reported by ANI, a partner of TV BRICS.

The source states that in 2024, India will build 7,394,417 passenger cars, commercial vehicles, two-wheelers, three-wheelers, and quadricycles. India's position as the world's leading producer of tractors and two-wheelers, with an annual production of over 21 million units, further underscores the country's dominance in the automotive industry.

In addition, it ranks fourth in the world for auto production and third for heavy truck production worldwide.

Over the next eight to ten years, the automobile industry will likely offer over US$200 billion in investment opportunities, with the market for electric vehicles projected to expand at an average annual rate of 49 per sent between 2022 and 2030.

Apart from electric vehicles, the automotive sector is observing a change in consumer inclinations towards bigger and more potent automobiles across all categories. The rising demand for trucks and other medium- and heavy-duty commercial vehicles is indicative of this trend.

The Indian passenger automobile market is projected to develop at a compound annual growth rate of more than 9 per cent from 2022 to 2027, reaching a market value of US$54.84 billion. By 2028, the global market for electric vehicles is expected to have grown five times to a value of US$ 1,318 billion.

The Indian automotive sector has a bright and exciting future ahead of it, as it is positioned to spearhead the electric car revolution and solidify its status as a major global automotive hub. India's automotive aftermarket is anticipated to rise astronomically in unison with the expansion of the auto sector.
Experts estimate that the vehicle aftermarket sector will produce US$32 billion by 2026. A wide range of products and services, including auto accessories, upkeep, and repair services, fall under this category.

Increased consumer awareness, a shift towards vehicle personalisation, and an expanding fleet of cars are some of the factors driving the increased demand for aftermarket goods and services. Furthermore, India's auto component export market is set for rapid expansion.

The industry's exports are expected to rise fivefold during the next ten years, according to forecasts.
India's auto component business already makes up a sizeable portion of the nation's exports; this anticipated expansion underscores the industry's potential to become a major player on the world stage.

It is anticipated that elements including competitive pricing, high quality standards, and technical developments will support this ongoing export expansion.

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