"Make in India" boosts India's EV and automobile growth

India's automobile sector is experiencing rapid growth, driven by the government's Make in India initiative launched in 2014. This program has significantly boosted vehicle production, particularly in the electric vehicle (EV) segment. Policy reforms, financial incentives, and improved infrastructure have played key roles in this transformation. Over the past decade, India has shifted from primarily relying on foreign cars to producing a large number of its own. Studies show that the production of vehicles increased from 2 million in the early 1990s to around 28 million in the 2023-24 fiscal year. The industry's turnover is about $240 billion, and vehicle exports stand at around $35 billion, creating approximately 30 million jobs. India is now a global leader in several categories of vehicles. It is the largest manufacturer of three-wheelers and ranks among the top two for two-wheelers and the top four for passenger vehicles. However, manufacturing vehicles is just one part of the challenge; producing components is equally crucial. India has made significant progress in manufacturing critical parts, including engine components and electronic systems, relying on a skilled workforce and strong government support. The auto component sector is projected to reach a $100 billion export target by 2030, representing one of the largest employment opportunities in India. The automotive industry contributes about 2.3% to the country’s GDP, reflecting rising demand and consumers’ increasing purchasing power. In the EV sector, around 4.4 million electric vehicles were registered by August 2024. The government is promoting this growth through initiatives like the Production Linked Incentive (PLI) scheme for advanced battery technology. This has spurred manufacturing and sales of EVs, with significant increases reported in both passenger and commercial vehicles. Looking ahead, the government is expected to introduce more incentives to support the EV industry, as it aims to transition towards a cleaner and greener future.