The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is emerging as one of the world's fastest growing passenger car markets and second largest two wheeler manufacturer. It is also the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer.

India is the biggest exporter of compact cars to Europe. Moreover, hybrid and electronic vehicles are new developments on the automobile canvas and India is one of the key markets for them. Global and Indian manufacturers are focussing their efforts to develop innovative products, technologies and supply chains.

As per data provided by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce, the cumulative foreign direct investment (FDI) inflow into the automobile industry during April 2000 to July 2012 was worth US$ 6,992 million, amounting to 4 per cent of the total FDI inflows (in terms of US$).

The Indian small and light commercial vehicle segment is expected to grow at 18.5 per cent compound annual growth rate (CAGR) for the next five years, according to a report titled 'Strategic Assesment of Small and Light Commercial Vehicles Market in India' by Frost & Sullivan.


The increase in foreign investment and the rise in production have opened up new avenues in the job sector of Indian automotive industry. It aims at employing 25 million people by 2016. The jobs in this industry are available in several functions like in engineering, manufacturing, operations, sales & marketing, design, customer service, purchase etc.