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India is currently ranked sixth among the world’s largest automobile production countries. Surprisingly, India was able to consistently secure the fifth slot before to 2020. However, India has slipped to sixth place as a result of the pandemic’s consequences. But it’ll only be a matter of time before India reclaims fifth place, passing South Korea.

In 2020, South Korea would have sold over 35 lakh vehicles, compared to little under 34 lakh in India. For comparison, Korea sold over 39.50 lakh cars in 2019, compared to around 45 lakh in India. As a result, it’s simple to see why India has consistently outperformed South Korea in terms of new vehicle sales per year.

The key challenge for India’s automobile sector is to surpass Germany’s dominance on this list. In 2018, India (51.74 lakh units) narrowly beat Germany (51.320 lakh units) in terms of sales. In 2019, the numbers were also fairly close, with Germany selling approximately 1.50 lakh more units than India.

However, by 2020, the difference was estimated to be roughly 3 lakh units in India. The reasons behind this are self-evident. Both of these countries were hit hard by the pandemic, with India still not out of the woods. This is when efforts such as “Make in India” come into play. If correctly implemented, it has the potential to fundamentally transform the Indian automobile industry in the near future, making India the world’s fourth largest automaker.


Made in India

While the “Make in India” initiative is not limited to the vehicle industry, we are currently focusing on its impact on this area. The Indian government is urging foreign carmakers to build up production plants in India as part of this strategy. With India’s reputation, many corporations have already made it the centre of their manufacturing operations.

Their automobiles are also exported from India to various areas of the world. Cheap labour, high-quality raw materials, and a government that encourages foreign direct investment are just a few of the elements that are luring a slew of global auto titans to our shores. Not only would this assist those automakers, but it will also boost the Indian economy. Not to mention that this will create a large number of job chances for the locals. It is a win-win situation for all parties involved, particularly in this day of globalisation.

The way forward is to form alliances and collaborate with other countries and businesses. Sharing knowledge and manufacturing capabilities will aid in the development of a future business that is both sustainable and environmentally benign. With each new Environmental Treaty, it is becoming increasingly important to conduct business while keeping environmental aims in mind. All of the players must work together in order for this to happen. It is impossible for a single country or corporation to achieve it on its own.

Local Manufacturing for Indian Businesses

We’ve previously established that India is the vehicle manufacturing capital of the world. Maruti Suzuki, Hyundai, Tata, Mahindra, Kia, Renault, Honda, Toyota, Volkswagen, Skoda, and a few more have already established manufacturing operations in the city. Some of the luxury brands’ products are made in India, including BMW, Audi, and Mercedes-Benz.

Some of these businesses’ high-end performance cars are either directly imported or assembled in the United States. Others, like as Volvo and Jaguar Land Rover, have only assembly plants in India and import parts from other countries. Make in India wants to entirely change this by requiring all automobile manufacturers to build their goods in India. Many players are considering India right now because of what it has to offer.

Of course, the companies see the value of manufacturing in India and also setup a strong foundation for the export of their cars outside. In addition to that, India itself is an emerging market and one of the fastest-growing automobile markets in the world with a rapidly rising middle-class population. The companies also want a bite of the larger pie.

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