Indian Automobile Industry Valued USD 108 Billion In 2022-23: Report
A management consulting services provider, Primus Partners has reported that the automobile industry registered an astounding employment figure of over 1.9 crore, occupying paramount importance in the economy.
The industry is being reshaped due to unprecedented changes brought about by electrification / alternative green power trains, rise of electronic components & software, autonomous driving & shared mobility. It is important to understand the value, where it lies and how it will change. Primus Partners has done a ground up study to arrive at the value of the Indian automobile industry and its segments.
While electrification has progressed well in 2-wheelers & 3-wheelers, it is still nascent compared to many countries. The Government as well as the private sectors are putting up massive investments & efforts to develop the value chain. A lot of factories are being constructed and can expect to catch up very quickly with the leading countries.
Sharing the report titled India’s Automobile Industry is Valued at Rs. 8.7 Lac Crore, Anurag Singh, Managing Director at Primus Partners, said, “Our ground up study on Automobile industry value is leading to a lot of insights, for example, the Indian market is bypassing the lower priced products & more value is being created at in feature rich higher priced vehicles. We believe that the value growth is happening faster than volume growth"
Key Insights from the Report
✔ The value share of the type of vehicle is quite different from the units share. Passenger vehicles accounted for the largest value share at 58 per cent while 2-wheelers accounted for the largest volume share at 77 per cent.
Units x 1000 | Rs in Crore | $b | Unit % | Value % | |
2W | 20,511 | 1,81,000 | 23 | 77% | 21% |
3W | 856 | 17,000 | 2 | 3% | 2% |
PV | 4,391 | 5,04,000 | 63 | 16% | 58% |
CV | 1,036 | 1,69,000 | 21 | 4% | 19% |
Total | 26,793 | 8,72,000 | 109 | 100% | 100% |
✔ Passenger vehicles produced Rs. 5 lakh crore value. The mid-size and full-size SUVs sub-segments accounted for over half of the value. The compact sub-segment is also important and created 25 per cent of value. The luxury vehicles contributed to Rs. 63,000 crore in value or 13 per cent of the segment. People are not preferring the cheaper ‘Mini’ cars and Sedans as they have low share in value. The key manufacturers in this segment are Maruti, Hyundai, Tata, Mahindra, Kia, Toyota, VW and Honda.
✔ India produced over 10 lakh commercial vehicles ranging from a small 4-wheel carrier with less than 2-ton capacity to large tractor trailers and speciality vehicles like tippers. The commercial vehicles category generates over Rs.1.7 lakh crore and accounts for 4 per cent of volume and 19 per cent of value. The key manufacturers in this segment are Tata, Ashok Leyland, Eicher, and BharatBenz.
✔ India is #1 country for two-wheeler production, closely matched by China. Over 20 million two-wheelers were produced during 2022-23 accounting for 77 per cent of the volume share. The overall segment accounted for Rs. 1.8 lakh crore amounting to 21 per cent of value. The key manufacturers in this segment are Hero Motocorp, Honda Scooters, Bajaj and TVS.
This report freshly covers the India Automobile industry from value creation perspective. It also compares to other studies and statements done on the subject.
