The automotive sector was de-licensed by the Indian government in 1991. The industry should brace itself for changing trends in the market due to the emerging growth in the industry. There will be an acceleration in the annual production of automobiles in India driven by the ongoing urbanization, flourishing consumer class, and favorable regulations and policies. The sector is both forward and backward integrated with the manufacturing and engineering sectors.
Mini cars and hatchback cars have been the backbone for the industry, but the majority of growth is predicted from new segments such as compact SUVs, sedans, and luxury vehicles. The government and industry established a target to triple industry revenues through the Automotive Mission Plan 2026. The government attempts to achieve two objectives—facilitate long-term growth in the industry and reduce emissions and oil dependence. A constant growth in the sector has captivated big investments, especially from various foreign auto majors through direct investments or private equity.