AUTOMOBILE INDUSTRY OUTLOOK 2025: BUMPY RIDE AHEAD
- Credit Rating Agency in India
- Industry Report
- AUTOMOBILE INDUSTRY OUTLOOK 2025: BUMPY RIDE AHEAD
India’s automobile industry has grown significantly, reaching ?22 lakh crore, and achieved a 9% sales growth in 2024, with 26.1 million units sold. At present, the US automobile industry is valued at ?78 lakh crore, followed by China at ?47 lakh crore. The electric vehicle market experienced a surge, with sales reaching 1.408 million units, driven by initiatives such as FAME I and II. India, now a global leader surpassing Japan, exports 50% of its two-wheelers and aims to generate 4 crore jobs.
The Indian automobile industry is experiencing robust growth across various vehicle categories, driven by strong demand from both rural and urban areas, as well as favourable economic conditions. In FY 25, total two-wheeler sales are projected to rise by 12.4% to 24.1 million units, nearing the all-time high of 24.5 million units recorded in FY 19. Domestic sales are expected to grow by 11.3% to 20 million units, supported by factors such as a normal monsoon, higher crop minimum support prices, and improved urban disposable incomes.