Indian Automobile Industry valued at $108 bn in 2022-23: Primus Partners

  • Industry News
  • Jul 04,23
The automobile industry produced value of Rs 8.7 lakh crore in 2022-23 and India produced 2.7 crore vehicles and is 3rd in passenger vehicles and 1st in 2 wheelers globally.
Indian Automobile Industry valued at $108 bn in 2022-23: Primus Partners

Primus Partners Pvt Ltd (Primus), a distinguished pioneer in the realm of management consulting services reported that the automobile industry registered an astounding employment figure of over 1.9 crore occupying paramount importance in the economy. Focused on policy perspective as well as business perspective, Primus Partners undertook the survey to assess the value being produced by the automobile industry.

The industry is being reshaped due to unprecedented changes brought about by electrification/alternative green power trains, rise of electronic components and software, autonomous driving and shared mobility. It is important to understand the value, where it lies and how it will change. Primus Partners has done a ground up study to arrive at the value of the Indian automobile industry and its segments.

While electrification has progressed well in two wheelers and three wheelers, it is still nascent compared to many countries. The government as well as the private sector are putting up massive investments and efforts to develop the value chain. A lot of factories are being constructed, and can expect to catch up very quickly with the leading countries.

Sharing the report titled India’s Automobile Industry is Valued at Rs 8.7 lakh crore, 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 emerging from the report

• The value share of type of vehicles is quite different from the units share. The passenger vehicles accounted for the largest value share at 58 per cent while two wheelers accounted for the largest volume share at 77 per cent.



• Passenger vehicles produced Rs 5 lakh crore values. The mid-size and full size SUVs sub segments accounted for over half of the value. The compact sub segment is also important and created 25 per cent of value. The luxury vehicles contributed to Rs 63,000 crore in value, or 13 per cent of the segment. People do not prefer the cheaper ‘Mini’ cars and Sedans and they have low share in value. The key manufacturers in this segment are Maruti, Hyundai, Tata, Mahindra, Kia, Toyota, VW and Honda.



• India produced over 10 lac commercial vehicles ranging from a small four-wheel carrier with less than two-ton capacity to large tractor trailers and specialty vehicles like tippers. The commercial vehicles category generates over Rs 1.7 lakh crore and accounts for four per cent of volume and 19 per cent of value. The key manufacturers in this segment are TATA, Ashok Leyland, Eicher, and BharatBenz.

• India is #1 country for two-wheeler production, closely matched by China. Over 20 million two-wheelers were produced during 2022-23 accounting for 77 per cent of the volume share. The overall segment accounted for Rs 1.8 lakh crore amounting to 21 per cent of value. The key manufacturers in this segment are Hero Motocorp, Honda Scooters, Bajaj and TVS.

This report freshly covers the India Automobile industry from value creation perspective. It also compares to other studies and statements done on the subject.  Primus Partners is one of the fastest growing Indian management consultancy firms.

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