Sector Snapshot · Automobiles

India's Automobile Market: Scale, Speed, and the Shift to EV

A fast-read primer on where the sector stands today and where it's headed — the backdrop against which we benchmark every company's cost structure in this category.

2.56 cr
Automobiles sold in India, FY25 (+7% YoY)
US$ 300 bn
Projected industry size by 2026
~6%
Share of national GDP, up from 2.77% in 1992-93
US$ 39.7 bn
Cumulative FDI inflow, Apr 2000–Dec 2025
30.7 mn
People employed, directly + indirectly

Two-Wheelers Still Rule the Road

Of every 100 vehicles sold domestically, more than three in four are two-wheelers — passenger vehicles are a distant second.

Domestic Market Share by Segment

FY26 (Apr–Dec 2025)

Two-wheelers — 77.25%
Passenger vehicles — 16.13%
Commercial vehicles — 3.66%
Three-wheelers — 2.96%

Leading Two-Wheeler OEMs

Market share, FY25

30.8%
Hero MotoCorp
25.4%
Honda
17.5%
TVS Motor
11.4%
Bajaj Auto

Exports Are Accelerating

Overseas demand for Indian-made vehicles grew faster in early FY26 than it did across all of FY25.

Automobile Exports, Q1 (units)

Q1 FY25 vs Q1 FY26 — up 22% year-on-year

11,92,566
Q1 FY25
14,57,461
Q1 FY26

What's Pushing the Sector Forward

Demand, capital, and policy are all pointing the same direction — toward faster volumes and an accelerating EV transition.

Demand & Trade
  • Rising middle-class income and a young population
  • Vehicle exports targeted to grow 5x between 2016–26
  • Exports up 19% to 5.3 million units in FY25
Investment
  • 10–25% lower operational costs vs. Europe & Latin America
  • US$ 200 bn+ EV investment potential over 5 years
  • Rs 5,940 crore allocated to the auto PLI scheme, FY27
Policy Support
  • PM E-DRIVE scheme: Rs 10,900 crore through March 2028
  • GST on EVs cut from 12% to 5%
  • India–UK trade deal cuts PV import tariffs from 100% to 10% over 10 years

Recent Developments

A sample of the industry-wide and policy moves shaping the sector through early 2026.

Companies We Benchmark in This Sector

Listed Indian Automobiles companies in tDoBe's cost-benchmarking coverage.

Maruti Suzuki
M & M
Bajaj Auto
Eicher Motors
TVS Motor Co.
Hyundai Motor India
Tata Motors PV
Hero Motocorp
Ather Energy
Force Motors
Ola Electric
Olectra Greentech
Landmark Cars
Zolo E-Mobility
Popular Vehicles
Mercury EV-Tech
Hindustan Motors
Wardwizard Innovations

See How These Companies Compare on Cost

The numbers above set the stage. Our Report translates it into a company-by-company cost benchmark — down to the category — so you can see exactly where a business sits against its peers.

Explore the Automobiles Report
Compiled from public government and industry sources, February 2026 update · Figures rounded · tDoBe sector snapshot, for informational purposes