The automotive sector has played a key role in the success of the government’s Make in India initiative.1 Many global carmakers – such as Renault, Suzuki, Honda, Volkswagen - have set up their manufacturing base in the country.
Automotive companies are embracing the opportunity to leverage India as a hub for low-cost, high-quality products.2
Over 500 million people are expected to be living in Indian cities by 2030. Clubbed with growing income levels, it is expected that India’s consumer class will expand, leading to higher spending on more and better vehicles across segments – providing automotive companies with a ready-made market.3
The Automotive Mission Plan (AMP) 2026 aims to position the Automotive Industry as the engine of the Make in India programme. The AMP 2026 presents the roadmap for the various segments within the automotive industry. It is collectively decided by the Government of India and the Indian Automotive Industry4.
Some of the key highlights of the AMP 2026 include:5
- The automotive industry to grow 3.5 – 4 times the current value of US$ 74 bn to US$ 260 bn – US$ 300 bn
- Contribute over 12% to India’s GDP
- Generate 65 mn jobs
- Increase exports to 35-40% of the total output