India’s Automobile Production: Facts, Figures & Major Makers

Key Takeaways

• India ranks among the top five vehicle‑producing nations in the world.
• Four companies-Maruti Suzuki, Tata Motors, Mahindra & Mahindra and Hero MotoCorp-account for over 60% of total output.
• The country built roughly 30million vehicles in 2023, with two‑wheelers making up two‑thirds of that total.
• Exports are growing fast, especially for small commercial vehicles and electric two‑wheelers.
• Government policies like Make in India and the 2024 Auto Policy aim to push production past 40million units by 2030.

When most people think of car factories, India’s automobile manufacturing sector is a vast network of plants that builds cars, two‑wheelers, trucks and buses for domestic use and export. The short answer? Absolutely-India not only produces automobiles, it churns out more vehicles than most countries on the planet.

But “produces” covers a lot of ground. From cheap commuter scooters to luxury sedans, from heavy-duty trucks that haul cargo across the subcontinent to electric buses destined for city fleets, the Indian auto landscape is a kaleidoscope of segments. Below we break down the who, what, where and why of Indian vehicle production, backed by the latest numbers from the International Organization of Motor Vehicle Manufacturers (OICA) and industry reports.

How Big Is India’s Production Machine?

According to the 2024 OICA data, India manufactured 30.2million motor vehicles in 2023. That figure splits into:

• 20.3million two‑wheelers (scooters and motorcycles)
• 7.9million passenger cars
• 1.5million commercial three‑wheelers and light trucks
• 0.5million heavy trucks and buses

These numbers place India at #4 globally, trailing only China, the United States and Japan. The two‑wheelers share is especially striking-over 65% of all vehicles rolled off Indian lines are motorcycles or scooters, a reflection of both affordability and the nation’s traffic realities.

Who’s Driving the Numbers?

The market is dominated by a handful of homegrown giants and a few foreign players who have set up local plants. Here’s a quick snapshot of the top manufacturers, based on 2023 production data:

These five firms together account for roughly 55% of all vehicles produced in the country. The other 45% is spread across a mix of smaller domestic brands (TVS Motor, Royal Enfield, etc.) and foreign subsidiaries like Hyundai, Kia, Renault and, until its recent exit, Ford.

Where Are the Plants Located?

Geography matters. Most large factories sit in the industrial corridors of Western and Southern India-states such as Maharashtra, Gujarat, TamilNadu, Karnataka and Haryana offer strong logistics, skilled labor pools and favorable tax regimes. The Make in India initiative has encouraged automakers to set up or expand plants in Tier‑2 cities, leading to new hubs in places like Bhubaneswar (Odisha) and Bhiwadi (Rajasthan).

Why this clustering? Proximity to ports (Mumbai, Chennai, Kandla) eases export shipments, while nearby supplier ecosystems cut lead times for components ranging from steel stampings to electronic modules. The clustering effect has also spurred ancillary industries-paint, glazing, rubber, and electronics factories-all feeding the main assembly lines.

Export vs. Domestic Demand

India used to be a net importer of cars. Today, it enjoys a trade surplus in two‑wheelers and a balanced picture for cars. In 2023, exports accounted for:

• ~1.3million two‑wheelers shipped mainly to Africa, Latin America and Southeast Asia.
• ~200,000 passenger cars exported, primarily to the Middle East and South‑Asian neighbours.
• Growing numbers of electric buses destined for African cities under the International Development Association’s green mobility programmes.

Domestic demand still dominates, driven by a young population, rising per‑capita income and a cultural preference for personal mobility. However, policy shifts-like higher fuel taxes and incentives for electric vehicles (EVs)-are nudging consumers toward greener options.

Policy Landscape Shaping Future Production

The Indian government rolled out the 2024 Auto Policy with three clear goals:

1. Boost domestic EV production to 7million units by 2030.
2. Increase overall vehicle output to 40million units by 2030.
3. Reduce import dependence on critical components such as lithium‑ion batteries and advanced driver‑assistance systems.

To meet these targets, the policy offers:

• Reduced customs duty on EV battery packs (down from 30% to 10%).
• Tax incentives for setting up ‘green manufacturing’ clusters.
• Faster clearance for foreign direct investment in electric mobility.

These measures have already attracted new entrants like Tesla, which announced a Gigafactory near Chennai in early 2025. The ripple effect is expected to lift overall India automobile production figures over the next decade.

Challenges and Pitfalls to Watch

Even with bullish forecasts, the sector faces headwinds:

• Supply‑chain volatility: Global chip shortages still affect vehicle startups, especially those aiming for high‑tech EVs.
• Regulatory uncertainty: Varying state-level emission standards can complicate product planning.
• Infrastructure gaps: Limited charging stations slow EV adoption, which in turn reduces economies of scale for manufacturers.
• Labor costs: While wages remain lower than in China, they are rising faster than productivity in key auto hubs.

Manufacturers that invest in local R&D, partner with tech firms for battery tech, and diversify across vehicle types are better positioned to weather these storms.

What the Numbers Mean for You

If you’re a consumer, the surge in local production translates to more model choices, better price competition and quicker after‑sales service-especially for two‑wheelers and entry‑level cars.

For investors, the data signals a robust growth trajectory, but you’ll want to keep an eye on companies that are early movers in EVs and autonomous tech.

And if you’re a policymaker or business owner in a related industry (parts, logistics, financing), the expanding plant map offers clear signals on where to set up operations to tap into the auto supply chain.