Index Market Size Government Initiatives Road Ahead The Indian automotive industry is one of the largest in the world. The industry represents 7.1% of the country's gross domestic product (GDP). The two-wheeler segment with a market share of 80% is the leader in the Indian automobile market owing to the growing middle class and young population. Furthermore, the growing interest of companies in exploring rural markets has further boosted the growth of the sector. The overall passenger vehicle (PV) segment has a market share of 14%. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay India is also a major exporter of automobiles and has strong export growth expectations for the foreseeable future. Overall automobile exports grew by 13.01% year-on-year between April and December 2017. Furthermore, several initiatives by the Indian government and major automotive players in the Indian market are expected to make India a leader in 2-vehicles wheels and four-wheelers (4W) in the world by 2020. Market size Production of passenger vehicles, commercial vehicles, three-wheelers and two-wheelers grew by 11.27% year-on-year between April and December 2017 reaching 21,415 .719 vehicles. In December 2017, sales of passenger cars and two-wheelers grew by 5.22% and 40.31% year-on-year, respectively. The automotive industry is set to witness major changes in the form of electric vehicles (EVs), shared mobility, Bharat Stage VI emission and safety norms. Electric cars in India are expected to get new green number plates and will also be able to enjoy free parking for three years along with toll exemption@. Electric vehicle (EV) sales in India increased 37.5% to 22,000 units during fiscal 2015-2016 and are set to grow further due to lower energy storage costs and government vision Indian to see six million electric and hybrid vehicles in India by 2020 Investments. To keep up with the growing demand, several automakers have started investing heavily in various segments of the industry in recent months. According to data released by the Department of Industrial Policy and Promotion (DIPP), the industry attracted foreign direct investment (FDI) worth $17.91 billion in the period between April 2000 and September 2017. Some of the investments and Recent/planned developments in the automotive sector in India are as follows: India's only electric automaker, Mahindra, and Mahindra Ltd has partnered with Uber to roll out its e-Verito electric sedan and e2o Plus sedan on Uber platforms in New Delhi and Hyderabad. Vedanta Resources Plc plans to invest approximately $9 billion in India and create more than one million direct or indirect jobs in the country. Government Initiatives The Government of India encourages foreign investment in the automotive sector and allows 100% FDI under the automatic route. Some of the recent initiatives taken by the Government of India are: -The Government of Karnataka will procure electric vehicles under the FAME program and set up charging infrastructure across Bangalore, according to Mr. R. V. Deshpande, Minister for Large and Medium Industries, Karnataka. The Ministry of Heavy Industries, Government of India has selected 11 cities in the country for introducing electric vehicles (EVs) in their public transport systems under the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India (FAME) program ).. 4, 2018