Automobiles - #SectorUpdates

Being the 4th largest industry in the world as per statistics for 2021, the Indian automobile industry has been a good indicator of macroeconomic expansion and technological advancements. India is currently shifting focus to electric vehicles to reduce carbon emissions which has led to a sales increase of EVs and overall sales of the industry. In 2021, 329,190 EVs were sold in India increasing from 122,607 units in 2020 indicating a 168% Year on Year growth.  The particular portion of the sector will expectedly create 5 crore new job opportunities by the end of 2030. The industry has attracted Foreign Direct Investment equity inflow (FDI) worth US$ 32.84 billion between 2000 – 2022 accounting for 6% of the total equity FDI during the period. The government of India expects that the sector would attract US$8 – US$10 through local and foreign investments by end of 2023. Currently, the automobile sector contributes 7.1% to the Indian GDP and The Automotive Mission Plan of the Government of India aims to increase the GDP contribution to 12% creating more employment opportunities and laying down the roadmap for the development of the industry.

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