India, the world’s fourth-largest automobile manufacturer, stands just behind China, Japan, and the USA, with a remarkable production output of 4.6 million cars in 2023. Additionally, India holds the tenth position globally in automobile exports, with a 2.4 percent share. The automobile industry significantly contributes to the Indian economy, accounting for 7.1 percent of the national GDP, a notable increase from 2.8 percent in 1992-93. This sector also constitutes over 50 percent of India’s manufacturing GDP, generating employment for nearly 37 million people.
As of March 2024, vehicle registrations in India reached 36.59 crore, with 46.43 lakh vehicles registered in the current year alone, generating a revenue of ₹73,04,18.24 crore.
Registration of Vehicles in India
In February 2024, motor vehicle registrations saw a seasonal decline of 5.3 percent due to the shorter duration of the month compared to January. However, there was a notable year-on-year increase of 13.1 percent, marking the fourth consecutive month of above-average growth rates. This trend has been particularly strong since November 2023, with registrations peaking at 2.9 million vehicles during the festive season.
The Vaahan portal classifies vehicles into transportation and non-transportation categories. In February 2024, transportation vehicle registrations grew by 18.9 percent year-on-year, driven mainly by passenger vehicles and three-wheelers. In contrast, goods vehicle registrations declined, slowing overall transportation vehicle growth to 32.8 percent for April 2023 to February 2024. Non-transportation vehicle registrations increased by 12.5 percent, with two-wheelers leading the growth despite not fully recovering to pre-pandemic levels.
Commercial Vehicles
The registration of commercial vehicles in India has seen fluctuations over the years. Heavy goods vehicles showed a steady rise until 2018-19, followed by a significant decline in 2020-21 and a partial recovery in 2021-22. Heavy passenger vehicles also experienced a fluctuating trend. Despite these variations, the commercial vehicle market in India remains dynamic, influenced by macroeconomic factors, government policies, technological advancements, and rising disposable incomes.
Vehicle Retail Data and Market Share
In February 2024, the Indian auto retail sector recorded a robust 13 percent year-on-year growth across all vehicle categories. Motorcycles grew by 13 percent, driven by rural demand and interest in premium models. The three-wheeler market surged by 24 percent, with electric vehicles (EVs) accounting for 53 percent of this growth. Despite a 12 percent growth in the passenger vehicle segment, high inventory levels of 50-55 days remain a concern. The commercial vehicle segment grew by 5 percent, driven by fleet purchases and improved financing options.
Production Trend
From April 2022 to March 2023, India produced a total of 25,931,867 vehicles, showing a recovery from the pandemic-induced decline. The industry’s production has fluctuated over the years, with notable declines during the economic slowdown but signs of recovery in recent years.
Performance of the Automobile Industry
The commercial vehicles industry is expected to experience a deceleration in revenue growth due to subdued demand linked to election-related uncertainties. However, the industry saw significant growth in the December 2023 quarter, with sales revenues increasing by 13.7 percent and operating profits by 51.6 percent. Analysts predict a 14-15 percent revenue growth for automobile companies in the last quarter of FY24, driven by healthy volume growth, commodity price deflation, and favorable currency movements.
Domestic Sales Trend
In FY-2022-23, total passenger vehicle sales increased significantly, with Maruti Suzuki India leading the market with a 9.52 percent increase in sales. Other key players like Hyundai and Tata Motors also saw growth, while Kia India faced a downturn. Overall, the domestic sales scenario demonstrated mixed results among key players.
Export Trend
Automobile exports from India declined by 5.5 percent to 4,500,492 units in 2023-24 due to monetary crises in various overseas markets. However, passenger vehicle exports saw a marginal growth.
India Electric Vehicle Market Analysis
The India Electric Vehicle Market is expected to grow at a CAGR of 26.05 percent from 2024 to 2029, reaching USD 110.74 billion. In 2023-24, electric vehicle sales surged across all sectors, reflecting a transition towards sustainable transportation solutions. Government initiatives and financial incentives have bolstered this growth.
Institutional Initiatives
The Government of India has introduced several initiatives to foster growth in the automobile industry, including increasing the allocation for the production-linked incentive (PLI) scheme and implementing the FAME II scheme for EV adoption. These initiatives aim to support the electrification of transportation and enhance the country’s manufacturing capabilities.
Key Developments
Honda Cars India’s Global Expansion: Honda Cars launched the Made in India Elevate SUV, branded as ‘WR-V’ in Japan, marking the first export of a vehicle to Japan by Honda Cars’ Indian unit.
BMW India’s Launch of the X3 Shadow Edition: BMW India unveiled the new BMW X3 Shadow Edition, targeting discerning buyers with stylish updates and robust functionality.
Risks and Challenges
The Indian automobile industry faces challenges from global supply chain disruptions, rising costs, and stricter emission regulations. These factors are increasing costs and squeezing manufacturers’ margins. Despite these challenges, opportunities exist in new financing models for EVs and innovative retail strategies.
The Road Ahead
The Indian automobile industry is poised for expansion despite challenges. The introduction of new products, particularly electric vehicles, signals a forward-thinking trajectory. Economic expansion, supportive government policies, and anticipated favorable weather patterns are projected to drive demand, particularly in rural regions. Market sentiment remains cautiously optimistic, with the industry focusing on innovation and strategic market engagement to achieve balanced growth across segments.
Road Transport Office (RTO) Statistics in India
| Till Date | Current Year | |
| On Parivahan Portal | ||
| Total Vehicle Registered | 36.59 crore | 46.43 lakh |
| Total Applications Submitted | 40.05 crore | 1.63 crore |
| Total Revenue Issued | 73,04,18.24crore | 21748.44 crore |
| On Sarthi Portal | ||
| Total Driving License Issued | 20.23 crore | 21.64 lakh |
| Total Applications Submitted | 20.87 crore | 73.06 lakh |
| Total Revenue Issued | 14829.88 crore | 567.44 crore |
Category-wise Registration of Commercial Vehicles in India (Numbers: 2012-13 to 2022-23)
| Year | Heavy goods vehicle | Heavy passenger vehicle | Medium goods vehicle | Medium passenger vehicle | Light goods vehicle | Light passenger vehicle |
| 2012-13 | 232,937 | 37,661 | 40,213 | 15,971 | 559,026 | 245,850 |
| 2013-14 | 175,996 | 33,903 | 28,486 | 15,889 | 528,904 | 220,665 |
| 2014-15 | 197,321 | 27,043 | 24,743 | 15,925 | 491,820 | 194,141 |
| 2015-16 | 254,700 | 34,114 | 30,296 | 17,909 | 486,981 | 241,015 |
| 2016-17 | 267,576 | 41,481 | 33,781 | 19,910 | 507,399 | 291,946 |
| 2017-18 | 295,034 | 28,265 | 32,582 | 18,725 | 584,591 | 235,387 |
| 2018-19 | 332,367 | 26,793 | 44,679 | 20,315 | 697,707 | 277,726 |
| 2019-20 | 238,944 | 36,499 | 42,223 | 23,960 | 668,493 | 245,474 |
| 2020-21 | 94,296 | 4,736 | 24,791 | 3,867 | 436,859 | 69,404 |
| 2021-22 | 186,836 | 8,439 | 37,460 | 5,356 | 493,942 | 94,625 |
| 2022-23 | 281,898 | 15,646 | 36,951 | 19,367 | 614,780 | 192,074 |
Source: CMIE Industry Outlook | Infomerics Economic Research
Class-Wise Registration of Commercial Vehicles in India
(Numbers: 2012-13 to 2022-23)
| Year | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 |
| Ambulance | 7,523 | 11,740 | 6,607 | 15,467 | 11,706 |
| Goods carrier | 865,218 | 796,231 | 430,301 | 617,295 | 811,045 |
| Bus | 52,088 | 66,114 | 8,260 | 12,684 | 34,479 |
| Omni bus | 6,606 | 4,306 | 1,056 | 1,113 | 2,369 |
| Dumper | 11,070 | 10,501 | 5,944 | 8,404 | 11,677 |
| Camper van/trailer | 1,531 | 799 | 329 | 419 | 686 |
| Cash van | 298 | 1,254 | 368 | 1,635 | 1,670 |
| Fire fighting vehicle | 353 | 643 | 81 | 239 | 598 |
| Fire tenders | 172 | 337 | 85 | 120 | 194 |
| Crane mounted vehicle | 5,663 | 6,522 | 4,990 | 5,938 | 6,479 |
| Semi-trailer (Commercial) | 2 | 2 | 7 | ||
| Trailer (Commercial) | 53,107 | 24,784 | 16,969 | 12,694 | 11,924 |
Source: CMIE Industry Outlook | Infomerics Economic Research
Passenger Vehicles
Category-wise Registration of Passenger Vehicles in India
(Numbers: 2012-13 to 2022-23)
| Year | Four-wheeler (Invalid Carriage) | Heavy motor vehicle | Light motor vehicle | Medium motor vehicle |
| 2012-13 | 395 | 4,718 | 2,882,044 | 8,117 |
| 2013-14 | 442 | 4,164 | 2,802,058 | 6,303 |
| 2014-15 | 600 | 3,654 | 2,972,239 | 5,923 |
| 2015-16 | 789 | 3,823 | 2,957,193 | 5,658 |
| 2016-17 | 1,035 | 4,417 | 3,160,134 | 7,154 |
| 2017-18 | 1,400 | 4,107 | 3,543,784 | 9,353 |
| 2018-19 | 1,472 | 4,889 | 3,612,615 | 14,802 |
| 2019-20 | 1,571 | 5,280 | 3,402,817 | 15,550 |
| 2020-21 | 1,523 | 3,824 | 3,272,534 | 17,074 |
| 2021-22 | 2,203 | 4,806 | 3,607,649 | 14,847 |
| 2022-23 | 2,929 | 5,877 | 4,260,110 | 13,382 |
Source: CMIE Industry Outlook | Infomerics Economic Research
Company-wise Annual Sale of Domestic Passenger Vehicles
| Company | FY24 | FY23 | % change |
| Maruti Suzuki India | 1759881 | 1606870 | 9.52 |
| Hyundai Motor India | 614721 | 567546 | 8.3 |
| Tata Motors | 570955 | 538640 | 6 |
| M&M | 459877 | 359253 | 28 |
| Kia India | 245634 | 269229 | -8.76 |
| Toyota Kirloskar Motor | 263512 | 177683 | 48 |
| Honda Cars India | 86584 | 91418 | -5.28 |
| MG Motors India (Retail Sales) | 55549 | 48866 | 13.67 |
| Renault India | 45439 | 78926 | -42.42 |
| Volkswagen India | 43197 | 41326 | 4.52 |
| Skoda India | 45520 | 52269 | -13 |
| Nissan India | 30354 | 33611 | -9.69 |
Source: SIAM, FADA
Auto Mobile Export Trend
| Category | 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 |
| Passenger Vehicles | 7,48,366 | 6,76,192 | 6,62,118 | 4,04,397 | 5,77,875 | 6,62,891 |
| Commercial Vehicles | 96,865 | 99,933 | 60,379 | 50,334 | 92,297 | 78,645 |
| Three Wheelers | 3,81,002 | 5,67,683 | 5,01,651 | 3,93,001 | 4,99,730 | 3,65,549 |
| Two Wheelers | 28,15,003 | 32,80,841 | 35,19,405 | 32,82,786 | 44,43,131 | 36,52,122 |
| Quadricycles | 1,605 | 4,400 | 5,185 | 3,529 | 4,326 | 2,280 |
| Grand Total | 40,42,841 | 46,29,049 | 47,48,738 | 41,34,047 | 56,17,359 | 47,61,487 |
Source: SIAM
Insights from ‘Prospects for India’s Automobile Industry’ by Dr. Manoranjan Sharma, Chief Economist, Infomerics Ratings.
