The automobile industry was helped by multiple government schemes in the fiscal year 2024 (FY24) during which the country produced around 49-lakh passenger vehicles, 9.9-lakh three-wheelers, 214.7-lakh two-wheelers, and 10.7-lakh commercial vehicles, the Economic Survey said on Monday.
The Survey noted that policies such as production linked incentive (PLI) Scheme for automobile and auto components with a budgetary outlay of ₹25,938 crore from FY23 to FY27; National Programme on Advanced Chemistry Cell (ACC) battery storage, approved in May 2021 with a budgetary outlay of ₹18,100 crore; and phase II of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II), approved with an outlay of ₹11,500 crore for five years during FY20 to FY24, helped the industry a lot in the growth.
For instance, under the FAME-II, the government incentivised a total of 1.66 lakh electric four wheelers, 11,70,200 of electric two-wheelers, 1,30,300 and 4,600 buses during these five years.
“In the first half of the last decade, passenger vehicles, such as cars and utility vehicles, experienced significant growth. However, the pandemic had a substantial impact on all segments of the automotive industry. While passenger vehicles quickly recovered, the recovery period for two-wheelers, three-wheelers, and commercial vehicles is longer,” the Survey tabled in the Parliament said.
The Indian automobile industry includes major global auto manufacturers across different categories, as well as a vibrant auto component industry that produces various auto parts, body and chassis, it informed.
The growth in the value of domestic production and consumption of automotive parts moderated during FY20 to FY23, compared to the previous five years. The production of auto components depends on the dynamics of the domestic and export markets, it added.