As per information received from Society of Indian Automobile Manufacturers (SIAM), the automobile sector contributes nearly 15% of the country's GST Revenue Collections. The sector is also a significant employment creator in the country with an estimated 30 million jobs (Direct: 4.2 Mn, Indirect: 26.5 Mn) across the entire automotive value chain. The production, sales and exports of automobiles in India during January to December, 2025 is as under : -

Production, Sales and Export of Automobiles in India (January–December 2025)

(Nos. in lakh)

Category	Production	Sales	Exports
Passenger Vehicles	53.8	44.9	8.6
Commercial Vehicles	11.1	10.3	0.9
Three Wheelers	12.2	7.9	4.3
Two Wheelers	255.0	205.0	49.4

(Source: SIAM)

Further, as per present estimates, the Capital Goods Industry contributes about 1.9% of GDP. This sector is crucial for the development of domestic manufacturing capabilities from a national self-reliance perspective. Production, Import and Export-data of the sector for the financial year 2024-25 are given as under: -

 (figures in Rs. crore)

Sl. No.	Sub-sectors of Capital Goods	Production	Import	Export
1	Machine Tools	14,286	18,686	1,472
2	Dies, Moulds and Press Tools	18,400	9,400	2,300
3	Textile Machinery	10,461	16,417	2,242
4	Printing Machinery	29,716	12,651	2,584
5	Earthmoving and Mining Machinery	80,750	4,250	6,800
6	Plastic Processing Machinery	4,827	4,405	2,428
7	Food Processing Machinery	15,249	10,850	4,562
8	Process Plant Equipment	31,505	7,645	10,968

(Source: Industry Associations namely, IMTMA, TAGMA, TMMA, IPAMA, ICEMA, PMMAI, AFTPAI, PPMAI)

The following schemes are being implemented by the Ministry of Heavy Industries(MHI) to promote domestic manufacturing and technological upgradation:

(i) Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto): The Government approved this scheme on 23.09.2021 for Automobile and Auto Component Industry in India for enhancing India's manufacturing capabilities for Advanced Automotive Technology(AAT) products with a budgetary outlay of Rs. 25,938 crore. The scheme proposes financial incentives to boost domestic manufacturing of AAT products including EVs with minimum 50% Domestic Value Addition (DVA) and attract investments in the automotive manufacturing value chain.

(ii) Production Linked Incentive Scheme on National Programme on Advanced Chemistry Cell (ACC) Battery Storage: The Government on 12.05.2021 approved PLI Scheme for manufacturing of ACC in the country with a budgetary outlay of Rs.18,100 crore. The scheme aims to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries.

(iii) PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme: This scheme with an outlay of Rs. 10,900 crore is implemented w.e.f. 01.04.2024 till 31.03.2028. The scheme aims to support electric vehicles including e-2W, e-3W, e-Trucks, e-buses and e-Ambulances. The scheme also includes support for EV public charging stations and upgradation of testing agencies. Under this scheme, demand incentive is provided to buyers (consumers/end users) of e-2Ws, e-3Ws (e-rickshaws & e-carts), e-3Ws (L5), e-trucks and e-ambulances in the form of an upfront price reduction at the time of purchase of the electric vehicle.

(iv) Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI): This scheme was notified on 15.03.2024 to promote the manufacturing of electric cars in India.

(v) Scheme on Enhancement of Competitiveness in The Indian Capital Goods Sector- Phase-II: In order to encourage the technology development and to augment the manufacturing infrastructure in the Capital Goods Sector, this demand driven scheme is being implemented on pan India basis. Under Phase II of this Scheme, a total of 29 projects have been sanctioned which include 7 Centres of Excellence (CoEs), 4 Common Engineering Facility Centres (CEFCs), 6 Testing and Certification Centres, 9 Industry Accelerators for Technology Development and 3 projects for Creation of Qualification Packs for skill level 6 and above.

Under phase I of the Scheme on Enhancement of Competitiveness in The Indian Capital Goods Sector, MHI has set up 4 Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Centres namely Centre for Industry 4.0 (C4i4) Lab Pune, IITD-AIA Foundation for Smart Manufacturing, IIT Delhi, I-4.0 India @ IISc, Bengaluru, Smart Manufacturing Demo & Development Cell, CMTI, Bengaluru.

Under phase II of the Scheme on Enhancement of Competitiveness in The Indian Capital Goods Sector, following projects have been sanctioned for Promotion of skilling in Capital Goods Sector– creation of skilling packages for skill levels 6 and above:

(i) ASDC (Automotive Skills Development Council),

(ii) CGSSC (Capital Goods & Strategic Skills Council)

(iii) IASC (Instrumentation, Automation, Surveillance and Communication)

This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Lok Sabha today.

 

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