India’s automobile industry contributes nearly 15 per cent to the country’s GST revenue collections, Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma said in Lok Sabha coting data from Society of Indian Automobile Manufacturers (SIAM).
The auto sector is also estimated to generate around 30 million jobs across the automotive value chain, including 4.2 million direct and 26.5 million indirect employment opportunities.
As per SIAM data, automobile production during January–December 2025 stood at 53.8 lakh passenger vehicles, 11.1 lakh commercial vehicles, 12.2 lakh three-wheelers and 255.0 lakh two-wheelers.
Sales during the same period were recorded at 44.9 lakh passenger vehicles, 10.3 lakh commercial vehicles, 7.9 lakh three-wheelers and 205.0 lakh two-wheelers. Exports comprised 8.6 lakh passenger vehicles, 0.9 lakh commercial vehicles, 4.3 lakh three-wheelers and 49.4 lakh two-wheelers.
Among other key industries, the MoS Heavy Industries in written reply to a question in Parliament said that capital goods sector contributes about 1.9 per cent to GDP.
For FY 2024–25, production in key sub-sectors included Rs 80,750 crore in earthmoving and mining machinery, Rs 31,505 crore in process plant equipment, Rs 29,716 crore in printing machinery, and Rs 18,400 crore in dies, moulds and press tools. Imports were highest in machine tools at Rs 18,686 crore and textile machinery at Rs 16,417 crore, while process plant equipment led exports at Rs 10,968 crore, followed by earthmoving and mining machinery at Rs 6,800 crore, based on data from industry associations.
To promote domestic manufacturing and technological upgradation, the Ministry of Heavy Industries is implementing multiple schemes. The Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry, approved in September 2021 with a budgetary outlay of Rs 25,938 crore, seeks to enhance manufacturing of Advanced Automotive Technology products, including electric vehicles, with a minimum 50 per cent domestic value addition.
The PLI scheme for Advanced Chemistry Cell battery storage, approved in May 2021 with an outlay of Rs 18,100 crore, aims to establish a domestic manufacturing ecosystem for 50 GWh of ACC batteries.
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, with an outlay of Rs 10,900 crore, is being implemented from April 1, 2024 to March 31, 2028, to support electric two-wheelers, three-wheelers, trucks, buses and ambulances, along with EV public charging infrastructure and upgradation of testing agencies.
The Scheme for Promotion of Manufacturing of Electric Passenger Cars in India, notified in March 2024, is also aimed at encouraging domestic production of electric cars.
In the capital goods segment, the Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector—Phase II is being implemented on a pan-India basis to foster technology development and augment manufacturing infrastructure.
Under Phase II, as many as 29 projects have been sanctioned, including Centres of Excellence, Common Engineering Facility Centres, Testing and Certification Centres, Industry Accelerators and skilling initiatives.
Earlier, under Phase I, four Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Centres were established to promote adoption of Industry 4.0 technologies.
