Export volume of vehicles India FY 2008-2024

India’s automotive sector is one of the largest in the world. The industry had around 26 million vehicles produced in financial year 2023. The sector also witnessed a strong growth in exports in the recent years until 2021 due to the impact of coronavirus pandemic. By the end of fiscal year 2024, the south Asian country had exported over 4.5 million vehicles. India is also the largest producer of two-wheelers globally. Bajaj Auto was the leading exporter of two-wheelers, followed by TVS Motors. 

Growth in electric vehicles

The automobile industry within the country has witnessed a slowdown due to an economic slump and the impact of coronavirus pandemic. Rising congestion and the push from the government to switch to electric vehicles could also be a reason for the decline in growth. The domestic market in the country was dominated by two-wheelers in 2023, and it also grew to the majority in terms of electric sales. The electric two-wheeler market was estimated to witness an exponential growth in sales by 2030.

Road infrastructure versus numbers

With the country on its way to overtaking China to become the most populated, the immense amount of traffic on narrow, partially developed roads could likely be a constant grapple. The increasing number of vehicles has indeed been an indicator of a burgeoning middle class, but the issue of increasing road congestion will require some organized planning and attention from the government.