24 million vehicles a year.( 3.64 Million are exported.) 3% growth rate.

Accounts for
around 7% of GDP of India. Two wheeler : 80% market share : middle class and
young population.
Passenger vehicles : 7% growth.
Light commercial vehicles : 0.3% growth.
Two wheelers : 3%.
7th largest producer in the world. Third largest automotive market by volume, by
2016 expected.
Car market has a huge potential.
Domestic Market Share : 2015-16

Passenger Vehicles 14%

Commercial Vehicles 3%

Three-wheelers 3%

Two-wheelers 80%

The automotive industry accounts for 45% of the countrys manufacturing gross
domestic product (GDP), 7.1 % of the countrys GDP and employs about 19 Million
people both directly and indirectly.
Tata nano is the best example for India's frugal engineering.
5th largest passenger vehicle and commercial vehicle market.
Six million hybrid and electric vehicles to be sold by 2020.
Even, the export market is growing now.
Some of the major investments and developments in the automobile sector in India
are as follows:

Global auto maker Ford plans to manufacture in India two families of engines
by 2017, a 2.2 litre diesel engine code-named Panther, and a 1.2 litre petrol
engine code-named Dragon, which are expected to power 270,000 Ford
vehicles globally.

The worlds largest air bag suppliers Autoliv Inc, Takata Corp, TRW
Automotive Inc and Toyoda Gosei Co are setting up plants and increasing
capacity in India.

General Motors plans to invest US$1 billion in India by 2020, mainly to

increase the capacity at the Talegaon plant in Maharashtra from 130,000
units a year to 220,000 by 2025.

US-based car maker Chrysler has planned to invest Rs 3,500 crore (US$525
million) in Maharashtra, to manufacture Jeep Grand Cherokee model.

Mercedes Benz has decided to manufacture the GLA entry SUV in India. The
company has doubled its India assembly capacity to 20,000 units per annum.

Germany-based luxury car maker Bayerische Motoren Werke AGs (BMW)

local unit has announced to procure components from seven India-based auto
parts makers.

Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in

France-based Peugeot Motorcycles (PMTC).

Government initiatives :
GOI allows 100% FDI for automobile industry.
As a part of the "Make in India" initiative,
Government supports usage of CNG, hybrid and electric vehicles. (eco-friendly)
Automobile Mission Plan is aimed at accelerating and sustaining growth in this
sector.
Export : India exported $15 billion worth of automobiles in 2014.
RnD incentives : Tax reduction, Exemption from BCD on lithium ion automotive
batteries
Export incentives,

Classification of Vehicles in India

The classification in India of vehicles with four or more wheels is as follows:

Heavy Commercial Vehicles: Heavy commercial vehicles, or HCVs, are

generally classified as those vehicles that have a Gross Vehicle Weight
(GVW), of above 16.2 metric tonnes.

Medium Commercial Vehicles: Medium commercial vehicles, or MCVs, are

generally classified as those vehicles that have a GVW between 7.5 and 16.2
metric tonnes.

Light Commercial Vehicles: Light commercial vehicles, or LCVs, are

generally classified as those vehicles that have a GVW of up to 7.5 metric
tonnes.

Passenger Cars: Passenger Cars are vehicles that have a seating capacity
of up to six persons, excluding the driver. In line with agreed categories of
sub-classification, passenger cars are further classified into the following
segments:

Mini Cars have a length of up to 3,400 mm. This entry-level segment

constituted 5.8% of the domestic passenger car market in 2007-08 by
volume.

Compact Cars have a length of between 3,401 mm and 4,000 mm. This
segment constituted 71.4% of the domestic passenger car market in
2007-08 by volume.

Midsize Cars have a length of between 4,001 mm and 4,500 mm. This
segment constituted 18.5% of the domestic passenger car market in
2007-08 by volume.

Executive Cars have a length of between 4,501 mm and 4,700 mm.

This segment constituted 3.5% of the domestic passenger car market in
2007-08.

Premium Cars and Luxury Cars have a length of between 4,701 mm

and 5,000 mm, and 5,001 mm and above, respectively. These segments
constituted 0.8% of the domestic passenger car market in 2007-08.

Utility Vehicles: Utility Vehicles, or UVs, have a seating capacity of seven

persons to 12 persons excluding the driver.

Multi-purpose Vehicles: Multi-purpose vehicles, or MPVs, are van-type

vehicles that have a seating capacity of seven persons to 12 persons
excluding the driver.