Automobile

The Indian automobile sector includes both automobiles and automotive components. It is a key engine driver of economic growth with a significant contribution to Gross Domestic Product (GDP), exports, and employment opportunities.

The rise in middle-class income levels and overall percentage of the youth population has led to consistent industry growth. India is a major auto exporter, with excellent export growth prospects for investors eyeing the opportunity.

Reasons for Investing

India is the 5th largest auto market in the world and the 7th largest manufacturer of commercial vehicles.
Domestic automobile production and domestic sales increased at a CAGR of 2.36% and 1.26%, respectively.
The automobile export increased at a CAGR of 6.94%, with two-wheelers making up 73.9% of overall exports, followed by passenger vehicles, three-wheelers, commercial vehicles, etc.
In the past year, premium motorbike sales have experienced a seven-fold growth.
As per India Energy Storage Alliance's report, the Indian EV market in India is projected to grow at a CAGR of 36% in the next five years.
The CAGR of 30% is projected for the EV battery market owing to the increased adoption of EV vehicles.
The Indian government has allowed for 100% automatic route FDI in the automobile industry.
Automobile giants like Lambhorgini, Tesla, Mercedes Benz, and Hyundai Motors have initiated investments in the competitive Indian market.

Industry Growth Factors

Increased emphasis on shared mobility concept
Government initiatives like FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles) spotlight electric vehicles to combat environmental pollution
Incubation centers for EV startups and initiatives to set up battery charging points
Availability of low-cost steel manufacturing and cheap skilled and unskilled labor
A seven-fold jump in domestic premium motorbike sales
Voluntary vehicle scrappage plan by the government to eliminate old and unfit vehicles on the road
Increased penetration of rural markets ad growth in fully automated driving systems
National Automotive Testing and R&D Infrastructure Project (NATRiP) initiated by the Indian government to promote India as an R&D hub in the auto market

What we can do for you?

Step 1

Business Registration

Choose a suitable business structure
Register your business with the Ministry of Corporate Affairs (MCA).
Obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN).

Step 2

Compliance and Licensing

• Apply for necessary licenses and permits based on your consultancy services (e.g., GST registration, Professional Tax registration).
• Ensure compliance with local, state, and national regulations.
• Set up a business bank account and maintain proper financial records.

Step 3

Operational Setup

Establish a physical or virtual office space.
Hire skilled professionals and build a competent team.
Develop a marketing strategy to attract clients and grow your business.

Would you like more detailed information on any of these steps?

Have any questions?

info@teamindiaglobal.com

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+91 11 4987 6020

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