Page 6 - ITLN November - December 2024

Cover Story
Automotive
Logistics

What drives India's

evolving automotive

supply chain?

As India's automotive sector advances towards automobile market, surpassing Japan.
sustainability, rising EV adoption, robust The electric vehicle (EV) sector has
policies, and tech-driven supply chains fuel its experienced a remarkable 500%
increase in sales from 2021 to 2023, with
global leadership ambitions. over 1.3 million EVs sold in the financial
year 2024. This market is anticipated
Rajarshi Chatterjee
to grow at an annual rate of 50%,
potentially reaching $7.09 billion by 2025.
he Indian automobile industry the industry increasingly emphasises By 2030, India could represent a $206
is vital to the nation's economy, vehicle electrification, particularly for billion opportunity in EVs, supported by
contributing around 7.1% three-wheelers and small passenger $180 billion in investments.
Tto the GDP and employing vehicles, which presents opportunities Additionally, the India Brand Equity
nearly 19 million people. Two-wheelers for innovation and sustainable growth. Foundation reports the passenger
predominantly dominate the sector and car market, valued at $32.7 billion
benefit from a growing middle class, India: A growing auto market and a in 2021, is also projected to grow
a predominantly young population, rising exporter at a CAGR of 9%, reaching about
and expanding opportunities in rural Earlier this year, the Minister of Road $54.84 billion by 2027, supported
markets. The growth of logistics and Transport and Highways of India by government initiatives like the
passenger transportation fuels demand Nitin Gadkari announced that India Automotive Mission Plan 2026 and
for commercial vehicles. Looking ahead, has become the world's third-largest the scrappage policy.
4
November - December 2024 www.itln.in