Summary:
India’s automotive sector is undergoing a significant transformation, driven by technological advancements, policy reforms, and shifting consumer preferences.

Key Highlights:

Electric Vehicle (EV) Adoption: EVs now account for 4.1% of total passenger car sales in May 2025, up from 2.6% in May 2024.

Government Initiatives: The Union Budget 2025-26 emphasizes incentives for EV battery production, critical mineral exemptions, and infrastructure investments to boost global competitiveness.

Market Growth: India’s automotive sector is expected to grow from $109 billion in 2023 to $214 billion in 2032.
timesofindia.indiatimes.com
ey.com
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businessworld.in
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economictimes.indiatimes.com
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strate.in

Implications:
These developments position India as a burgeoning hub for automotive innovation and manufacturing, attracting global investments and fostering sustainable mobility solutions