Will Indian Automobile Industry Expects a Smooth Ride ahead?

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The present Scenario

  1. The Indian auto industry has the potential to emerge as one of the largest in the world. Presently, India is :
  2. The largest two-wheeler manufacturer in the world.
  3. The largest three-wheeler market in the world.
  4. The second-largest two-wheeler market in the world.
  5. The fourth-largest commercial vehicle market in the world.

The Impact of Covid-19

The pandemic-induced lockdown resulted in the shutting down of production at original equipment manufacturers (OEM). It also led to disruption of the entire value chain of major industries in India, and therefore negatively affected the production of auto spare parts in micro, small and medium-sized industries. In addition, the reduction in consumer demand for passenger vehicles contributed to a loss in revenue and a severe liquidity crisis in the sector.

According to the Society of Indian Automobile Manufacturers, the sector registered negative growth in sales of all vehicle categories in the year 2021

Also, production cuts due to a slump in demand negatively impacted employment growth. According to the Parliamentary Panel report submitted to Rajya Sabha chairman M Venkaiah Naidu, the estimated job loss in the Indian automobile sector stood at 3.45 lakh. The largest carmaker Maruti Suzuki cut the temporary workforce by 6%, following the drop in car sales. The auto sector, which contributed more than 7% to India’s GDP, is now facing a severe contraction, with some automakers facing a year-on-year decline of more than 30% in recent months.

Union Budget; Impact on Indian Automobile Industry

In an attempt to boost the opportunities and strategies planned for the Indian auto industry in the future, our Finance Minister introduced a certain measure in the Union Budget 2022. A majority of the measures introduced are for increasing the pace of adoption and strengthening electric mobility in India which was expected as quoted by the experts. The automobile industry is now eligible to manufacture electric scooters in India, which is now having here are some of the key announcements made for the Indian automobile industry

  • Introduction of electric vehicles in public transport
  • No policies for making cars, bikes, and scooters more affordable
  • Open to inputs from private players in defense R&D
  • Introduction of MSP payment of Rs 2.73 lakh crore
  • Allotment of Rs 20,000 crore for infrastructure projects

The Future…Evolution & Growth

India is expected to be the world’s third-largest automotive market in terms of volume by 2026. The Automobile industry of India currently manufactures 22.7 mn vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers, electric cars, and quadricycles in April-March 2020, of which 4.1 mn are exported.

The automobile sector has seen a drastic change over the past few years with electrified, autonomous, shared, and connected cars. Technological advancement has changed our perspective of visualizing things. The transformation of this sector will be driven largely by the youngsters and technically savvy generations. They would play an important role in driving the transformation of the automotive industry. These are some of the trends that we will witness in the coming next few years

  • Electric Vehicles
  • Autonomous/ Driverless Cars
  • Connected cars (with intranet, Apps)
  • Car sharing (carpool, car rentals )

Also Read: Role of Instrumentation in Automobile Industry

Driving into the Automobile Industry with solutions from Aimil Ltd.

Aimil does understand the need for Quality vehicles and faster R&D development in today’s competitive market. With infrastructure development in the last 10 years in the Era of Highways and Expressways, the need for better vehicles in terms of comfort & durability has enhanced.

Aimil Ltd, An ISO 9001:2015 certified company operating since 1932 celebrating its 90th Anniversary this year. We, the frontiers in instrumentation in India, joined hands with more than 100+ Global Leaders to bring in leading-edge technologies from the best in the world and provide optimal products and services. There are three main stages of an assembly line in the automotive industry the body shop, the paint shop, and the trim and chassis shop. We believe in bringing state-of-the-art Instrumentation products & services for each of the stages and new technology with a focus on providing better Customer Service.

We’re ready for What’s Next In Instrumentation & Technology, with a prime focus on Customer Delight, and want to be preferred technology partners to our customers.


The automobile industry is one of the most important drivers of the economic growth of India and one with high participation in global value chains. The growth of this sector has been on the back of strong government support which has helped it carve a unique path in the manufacturing of electric scooters in India. The automobiles produced in the country uniquely cater to the demands of low- and middle-income groups of the population which makes this sector stand out among the other automobile-producing countries.

For more details, please visit www.aimil.com   Or For any inquiry, please contact:  marcom@aimil.com

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