India’s Automotive Landscape To Undergo Remarkable Transformation

India's automotive landscape is undergoing a remarkable transformation, with sustainability and self-reliance emerging as key drivers of change. Recent data reveals that the industry has successfully localised components worth ₹18,000-20,000 crore, and net imports have climbed by ₹11,000 crore due to new technological demands. This push towards self-reliance has yielded impressive results wherein it has surpassed the set target of reducing net import by 3-5 per cent to 6.8 per cent.The market has already shown promising growth wherein vehicle sales have doubled from pre-pandemic levels to reach 2.24 million units in 2024. 

On the other hand, the transition to an all-electric mobility does bring with it its own set of challenges and opportunities. However, the government has launched initiatives to attract semiconductor manufacturers and strengthen the domestic electronics ecosystem. Plus given how battery cell prices have declined off late, that in turn is expected to make EVs more viable, and, as a result, is expected to make way for a massive localisation shift. But at the same time, manufacturers are also not going all in with EVs and are trying to diversify their portfolio with hybrid and flex fuel offerings. 

The industry is also preparing for the next phase of emission regulations. While the shift to BS6 standards was challenging, experts anticipate a smoother transition to BS7 norms. This optimism seems well-founded for a blend of policy support, technological advancement, and industry collaboration. India's automotive sector appears well-positioned to lead the charge towards sustainable mobility while strengthening its domestic manufacturing capabilities.

(Source)