Indian automobile industry valued at US$108 billion in 2022-23: Primus Partners

Management consulting services firm Primus Partners  revealed that the automobile industry achieved an employment figure of over 1.9 crore. It further stated that India produced 2.7 crore vehicles across segments and types. 

The automobile industry is undergoing significant transformations as a result of revolutionary changes driven by electrification/alternative green power trains, the increasing prominence of electronic components and software, as well as advancements in autonomous driving and shared mobility. Although electrification has made substantial progress in two-wheelers and three-wheelers, its adoption is still in its early stages compared to many other countries. Both the Government and the Private sector are making substantial investments and exerting extensive efforts to develop the value chain. Numerous factories are being constructed, indicating a rapid catch-up with leading countries soon. 

Anurag Singh, Managing Director, 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".

Key insights from the report:
The distribution of value among different types of vehicles significantly differs from the distribution of units. Passenger vehicles hold the highest value share, comprising 58%, whereas 2-wheelers claim the largest volume share, accounting for 77%.

Passenger vehicles generated a value of Rs 5 lakh crore. The mid-size and full-size SUV sub-segments collectively accounted for more than half of this value. The compact sub-segment also held significant importance, contributing 25% of the overall value. Luxury vehicles, on the other hand, contributed Rs 63,000 crore, representing 13% of the segment's value. 'Mini' cars and sedans, have a lower share in value.