NITI Aayog: India 4th largest automobile maker in world
Report
4 min read
According to the NITI Aayog’s “Automotive Industry: Powering India’s Participation in Global Value Chains” report, India is the fourth largest automobile producer in the world after China, the United States of America and Japan.
The NITI Aayog report was released by Suman Bery, the Vice Chairman of the NITI Aayog, in New Delhi.
The report explores the transformative potential of India’s auto component industry, its role in the Global Value Chain and its importance to the Indian economy.
The report has been prepared by the National Institution for Transforming India (NITI) in collaboration with its knowledge partners and CRISIL.
India, fourth-largest automobile producer in the world
According to the report in 2023,
- China was the largest producer of automobiles in the world, with a production of over 30 million units of cars and passenger vehicles.
- The USA was in second place with a production of over 10 million automobiles.
- Japan was third with a production of 9 million units.
- India was in 4th place with a production of 6 million units.
India’s share in the global automotive component traded market
- According to the report, the global automotive component traded market in 2020 was around $700 billion.
- India's share in the market was just 3 % or around $ 20 billion.
- India imported automotive components worth around $20 billion.
- In the automotive component sector, India enjoyed a negligible trade surplus.
Target for the Indian auto component Industry
- The report suggests India shall target an 8 % share of the global automotive component trade by 2030.
- To achieve this target, it has set a production target of $145 billion, an export target of $60 billion, and a trade surplus of $25 billion by 2030.
- It is also expected to generate an additional 20 to 25 lakh jobs in the sector.
The report suggests India should focus on electric vehicles and next-generation features like Advanced Driver Assistance Systems (ADAS) to realise this goal.
Contribution of the Automobile sector in the Indian economy
- Manufacturing sector contribution to the gross domestic production (GDP) - 17 %,
- Automobile sector share in manufacturing gross domestic product (GDP)- 49%,
- Contribution to GDP- 7.1%,
About NITI Aayog
The National Institution for Transforming India (NITI)Aayog was set up by the government of india through a cabinet resolution.
It came into existence on 1 January 2015 and replaced the Planning Commission.
Chairman- Prime Minister Narendra Modi
Vice Chairman- Suman Berry
CEO - B V R Subramanayam
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