Key growth drivers in the Indian car market

1. Affordability: Given the lower income level in India, consumer affordability in user
car segment boots domestic demand.
2. Availability: Quality four-wheeler vehicles and their price sensitive ethos make
customers more receptive than ever to purchase new and used cars.
3. Policy support: Automotive Mission Plan (2021-26), a mutual initiative of GOI and
IAI for the development of the automobile industry boosts consumer demand.
Allocation of capex towards development of road infrastructure and EV battery
policy expresses GOI’s intentions to shape India as a global manufacturer.
4. Rising exports: Passenger vehicle exports from India increased 43% in FY22, with
Maruti Suzuki being the top exporter.
5. Foreign investments: Automobile industry received FDI inflows of US$30.78 bn
from April 2000-Sept 2021.