2016 Make in India Automotive Sector Report released

Click here to read the full report.

The Government of India recently released its 2016 Make in India Automotive Sector achievements report to highlight progress made under the Central Government's famed Make in India initiative.

The said report claims that the Indian automotive industry has been on a growth trajectory since the last two years. During this period, sales, production and exports have seen impressive spikes. The report also highlights the country's automotive industry's standings, with respect to the global market; India is the largest tractor manufacturer, 2nd largest two-wheeler manufacturer, 2nd largest bus manufacturer, 5th largest heavy truck manufacturer, 6th largest car manufacturer and 8th largest commercial vehicle manufacturer.

Following are the major takeaways from the detailed report:

- The Indian automotive industry was valued at USD 93 billion, at the end of FY 2015-16

- The automotive industry contributes 7.1% to India's overall GDP and nearly 49% to the country's manufacturing GDP (FY 2015-16)

- The industry is a major source of employment generation, as it employs over 29 million people in the country (directly and indirectly)

- The automotive industry sees an average production of around 24 million vehicles annually

- The government has sketched an Automobile Mission Plan 2016-2026 initiative that aims to make India one of the world's top 3 automobile industries, with a gross revenue of over USD 300 billion by 2026

- The automobile industry is also a major FDI earner for the country, as it saw an FDI inflow of USD 5.5 billion between April 2014 and March 2016

- Global automotive manufacturers like Isuzu, Ford, Tata and Suzuki have invested heavily to set up and increase production capacity in the country

- Overall vehicle production in India increased by 2.6% in FY 2015-16. Production amounted to a total of 23,960,940 vehicles (including passenger vehicles, commercial vehicles, three wheelers, two wheelers and quadricycles) in FY 2015-16, against 23,358,047 vehicles produced in FY 2014-15

- Sales of passenger vehicles increased by 7.24% in FY 2015-16 over the previous year. Passenger cars grew by 7.87%, utility vehicles grew by 6.25% and vans saw a 3.58% rise

- The commercial vehicles segment grew by 11.51% in FY 2015-16, primarily boosted by 29.91% growth for the Medium & Heavy Commercial Vehicles

- Three-wheeler sales too reported a growth of 1.03% in FY 2015-16

- Two-wheeler sales increased by 3.01% in FY 2015-16, with scooters accounting a growth of 11.79%

- Production of electric and hybrid vehicles in the country saw a huge spike - from 17,107 (FY 2014-15) to 71,909 (FY 2015-16). Sales of these green vehicles also jumped from 16,513 units (FY 2014-15) to 65,224 units (FY 2015-16)

- Sales of electric and hybrid vehicles were given a push by the implementation of Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) initiative. Under this scheme, hybrid vehicles now attract an excise duty at 12.5%, while electric vehicles are placed at 6%, against the excise duty of 30%, 27%, 24% and 12.5% applicable on vehicles with conventional fuel

- Automobile exports for the FY 2015-16 grew by 1.91%, amounting to a total worth of USD 8.8 billion

- The auto component industry also registered an 8.8% increase in turnover, as it grew from USD 38.5 billion in FY 2014-15 to USD 39 billion in FY 2015-16. The component industry contributed 4% to India's exports in 2015-16