Rising exports reflective of acceptance of India-made cars across global markets: Economic Survey

Rising automobile exports are reflective of the increasing acceptance of India-manufactured vehicles across global markets, according to Economic Survey 2025-26.

The automobile industry witnessed tremendous growth in exports, with more than 53 lakh vehicles shipped across passenger, commercial, two-wheeler, and three-wheeler segments in the FY25 and posting double-digit growth in the first half of 2025-26, it noted.

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A robust demand-side recovery has driven both production growth and sales in the post-pandemic period, the survey stated.

Overall, the industry has recorded nearly 33% growth in production over the last decade (from FY15 to FY25), it added.

Supported by a vast manufacturing and auto component ecosystem, the automobile industry provides direct and indirect employment to over 30 million people accounting for nearly 15 per cent of the country’s GST collections, it added.

The automotive industry is a significant driver of economic growth, with India established as the world’s largest market for two-wheelers and three-wheelers and the third-largest market globally for passenger and commercial vehicles, the Survey said.

Besides, government initiatives like PLI Scheme for Automobile & Auto Components Industry, PLI scheme for ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage, PM E-DRIVE Scheme, and PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme have driven significant growth in Electric Vehicle registrations in recent years, the Survey stated.

Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC), notified in March 2024, is also helping the growth of the sector, it noted. Finance Minister Nirmala Sitharaman on Thursday (January 29, 2026) tabled the Economic Survey 2025-26 in the Lok Sabha, an annual report card of the country’s economic performance in the financial year.