India's auto sector expected to grow, especially in cities

India's automotive sector is poised for growth, fueled by government policies like the FAME II scheme and a robust job market. A report indicates that cities such as Mumbai and Hyderabad are expected to thrive, while some may stagnate. The FAME II scheme, effective since April 2019, promotes electric vehicle adoption through incentives. About 24.7% of cities are projected to see strong growth, while 49.5% may experience moderate growth. Hyderabad and Mumbai benefit from a growing service sector and job opportunities. Infrastructure improvements have also made these cities attractive for businesses, driving demand in the automotive sector.