Primus Partners Pvt. Ltd. (Primus), a distinguished pioneer in the realm of management consulting services reported that the automobile industry register an astounding employment figure of over 1.9 crore++ occupying paramount importance in the economy.
Focus on policy perspective as well as business perspective, Primus Partners undertook the survey to assess the value being produce by the automobile industry.
The industry is being reshape due to unprecedented changes brought about by electrification / alternative green power trains, rise of electronic components & software, autonomous driving & shared mobility.
It is important to understand the value, where it lies and how it will change.
Primus Partners has done a ground up study to arrive at the value of the Indian automobile industry and its segments.
While electrification has progress well in 2 wheelers & 3 wheelers, it is still nascent compare to many countries.
The Government as well as the Private sector are putting up massive investments & efforts to develop the value chain.
A lot of factories are being construct, and can expect to catch up very quickly with the leading countries.
Sharing the report title India’s Automobile Industry is Value at INR 8.7 Lac Crore, Anurag Singh, Managing Director, Primus Partners, said :
“Our ground up study on Automobile industry value is leading to a lot of insights, for example the Indian market is bypassing the lower priced products & more value is being created at in feature rich higher priced vehicles. We believe that the value growth is happening faster than volume growth”
Key Insights emerging from the Report
The value share of type of vehicles is quite different from the units share.
The passenger vehicles account for the largest value share at 58% while 2 wheelers accounted for the largest volume share at 77%
| Units x 1000 | Rs Cr | $b | Unit% | Value % | |
| 2W | 20,511 | 1,81,000 | 23 | 77% | 21% |
| 3W | 856 | 17,000 | 2 | 3% | 2% |
| PV | 4,391 | 5,04,000 | 63 | 16% | 58% |
| CV | 1,036 | 1,69,000 | 21 | 4% | 19% |
| Total | 26,793 | 8,72,000 | 109 | 100% | 100% |
Passenger vehicles produced Rs 5 Lac crore value.
The mid size and full size SUVs sub segments accounted for over half of the value.
The compact sub segment is also important and created 25% of value.
The luxury vehicles contributed to Rs 63,000 crore in value, or 13% of the segment.
People are not preferring the cheaper ‘Mini’ cars and Sedans and they have low share in value.
The key manufacturers in this segment are Maruti, Hyundai, Tata, Mahindra, Kia, Toyota, VW and Honda.
India produce over 10 lac commercial vehicles ranging from a small 4-wheel carrier with less than 2-ton capacity to large tractor trailers and specialty vehicles like tippers.
The commercial vehicles category generates over INR 1.7 lac crore and accounts for 4% of volume and 19% of value.
The key manufacturers in this segment are TATA, Ashok Leyland, Eicher, and BharatBenz.
India is 1 country for two-wheeler production, closely matched by China.
Over 20 million two-wheelers were produce during 2022-23 accounting for 77% of the volume share.
The overall segment accounted for INR 1.8 lac crore amounting to 21% of value.
The key manufacturers in this segment are Hero Motocorp, Honda Scooters, Bajaj and TVS.
This report freshly covers the India Automobile industry from value creation perspective.
It also compares to other studies and statements done on the subject.
Primus Partners is one of the fastest growing Indian management consultancy firms.
