Primus Partners (Primus), a management consulting services company has reported that the automobile industry in India was valued at Rs 8.7 lakh crore, employing over 1.9 crore people, and contributed 3.1 percent to India’s GDP in FY2023.
The report finds that the automotive industry is being reshaped due to unprecedented changes brought about by electrification/alternative green powertrain, rise of electronic components & software, autonomous driving and shared mobility.
While electrification has progressed well in two- and three-wheelers, it is still nascent compared to many countries. The Government as well as the Private sector are putting up massive investments and 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.
Anurag Singh, MD, 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 and more value is being created at in feature-rich higher priced vehicles. We believe that the value growth is happening faster than volume growth.”
The report highlights that while the two-wheeler segment was the highest in terms of volume sales, it was far behind the passenger almost 1/3 of its value contribution.
The automotive industry it estimates produced Rs 8.72 lakh crore worth of value, with the passenger vehicle segment contributing Rs 5.04 lakh crore, the two-wheeler segment Rs 1.81 lakh crore, closely followed by the commercial vehicle segment at Rs 1.69 lakh crore and the three-wheeler segment at Rs 17,000 crore respectively.
Of the PV segment, 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 percent of value. The luxury vehicles contributed to Rs 63,000 crore in value, or 13 percent of the segment.
Infographics & data source: Primus Partners
