Automobile Production Hits 2.7 Crore Units, Valued At $108 Billion In FY23: Report

The passenger vehicles accounted for a significant 57 per cent share, valued at Rs 5 lakh crore, while the commercial vehicle segment contributed to 10 lakh vehicles and a value of Rs 1.7 lakh crore.

The automobile industry in the country provided employment to around 19 million people during the financial year 2022-23, the report said.

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The automobile industry in India produced a whopping 2.7 crore vehicles in the financial year 2022-23, with an estimated value of approximately $108 billion (Rs 8.7 lakh crore), said a management consulting services firm on Wednesday, reported PTI. As per the report, the passenger vehicle segment accounted for more than half of the total production. 

According to a report by management consulting services firm Primus Partners, the passenger vehicle segment accounted for a significant 57 per cent share, valued at Rs 5 lakh crore, while the commercial vehicle segment, encompassing a range from small 4-wheel carriers to large tractor-trailers and specialty vehicles like tippers, contributed to 10 lakh vehicles and a value of Rs 1.7 lakh crore, as per PTI. The CV segment accounted for 4 per cent in the total volume and 19 per cent in value terms, it said.

Primus Partners data suggest that the production of two-wheelers in India is closely matched that of China, with a staggering 20 million two-wheelers manufactured in China, representing 77 per cent of the volume share. This segment contributed Rs 1.8 lakh crore, accounting for 21 per cent of the total value, the report said. 

Furthermore, the automobile industry in the country provided employment to around 19 million people during the financial year 2022-23.

According to the report, the mid-size and full-size SUV sub-segments hold the majority share in value within the passenger vehicle segment. Together, they account for over half of the value. The compact sub-segment is also significant, contributing 25 per cent of the value. Luxury segment vehicles make a notable contribution of Rs 63,000 crore, representing 13 per cent of the segment's value. However, the report highlights that cheaper 'Mini' cars and sedans have lower value shares, indicating a preference shift among consumers.

The report highlights that a significant portion of the electrification efforts in India has been focused on the two-wheeler and three-wheeler segments. While the Indian EV industry currently lags behind leading countries like China, the US, and the EU, substantial investments have been made in India. It also suggests that the country is poised for substantial growth in its EV segment in the coming years.

The automobile industry is undergoing unprecedented changes, with multiple factors reshaping the landscape, according to the report. The factors driving this transformation include electrification and the adoption of alternative green power sources, increased usage of electronic components, advancements in autonomous technology (such as self-driven cars), and the growing popularity of shared vehicle rentals and cab services, among others. These factors are collectively driving the transformation of the Indian automobile industry.

“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 in feature-rich higher priced vehicles. We believe that the value growth is happening faster than volume growth," said Anurag Singh, Managing Director, Primus Partners, as per PTI.