New Delhi: India’s car and two-wheeler makers are quietly rewriting the country’s global image. Once seen mainly as a low-cost manufacturing base, India is now emerging as a trusted exporter of vehicles across segments, from small hatchbacks and scooters to buses and commercial trucks.
The Economic Survey 2025-26, tabled in Parliament on January 29, 2026, paints a picture of an industry that has gained steady momentum after the pandemic. Exports are rising, factories are running fuller than before, and Indian-made vehicles are finding buyers well beyond domestic roads.
Automobile exports cross 53 lakh units in FY25
According to the Economic Survey, the automobile industry shipped more than 53 lakh vehicles in FY25 across passenger vehicles, commercial vehicles, two-wheelers, and three-wheelers. The sector also posted double-digit export growth in the first half of FY26.
The survey links this performance to increasing acceptance of India-manufactured vehicles in global markets. Simply put, cars and bikes built in India are being trusted in more countries than ever.
Production rises nearly 33 percent over a decade
The Economic Survey notes that overall vehicle production has grown by nearly 33 percent over the last ten years, from FY15 to FY25.
A key factor behind this growth is strong demand recovery after COVID-19. As people returned to work, travel, and daily commuting, sales picked up. Production followed.
The industry now stands as:
- World’s largest market for two-wheelers
- World’s largest market for three-wheelers
- Third-largest global market for passenger and commercial vehicles
This scale gives manufacturers confidence to invest in new platforms, engines, and electric technologies.
Auto sector supports over 30 million jobs
Beyond vehicles, the automobile industry plays a massive role in employment.
The Economic Survey states that the sector provides direct and indirect employment to more than 30 million people. It also contributes nearly 15 percent of India’s total GST collections.
This means every factory, dealership, workshop, and parts supplier feeds into a much larger economic chain.
Government schemes pushing EV growth
The survey highlights several government programmes that have supported the rise in electric vehicle registrations.
These include:
- PLI scheme for Automobile and Auto Components
- PLI scheme for Advanced Chemistry Cell battery storage
- PM E-DRIVE scheme
- PM e-Bus Sewa Payment Security Mechanism scheme
- Scheme to Promote Manufacturing of Electric Passenger Cars in India, notified in March 2024
Together, these initiatives have encouraged companies to localise EV production and battery manufacturing.
On the road, the effect is visible. More electric scooters, cars, and buses are becoming part of daily traffic in Indian cities.