The automobile sector of the country is witnessing a gradual rise in sales. After clocking the worst sales volume in April 2020 with zero sales, December 2021 witnessed a heavy sales report with Maruti Suzuki and Tata Motors leading the charts.

The rise of the automobile industry is backed by a number of factors including the availability of low-cost trained labour, significant research and development centres and low-cost steel manufacturing. The sector also offers excellent potential for investment as well as direct and indirect employment for both skilled and unskilled labour.

According to IBEF research, the Indian automotive sector (including component manufacturing) is predicted to reach Rs. 16-18 trillion ($251-282 billion) by 2026.

After recovering from the ravages of the Covid-19 pandemic, the Indian auto sector is predicted to rise rapidly in 2022-23. Electric cars, particularly two-wheelers, are expected to sell well in the upcoming fiscal.

According to industry observers, the automotive industry is set to see the undermentioned trends outline that over the next 10 to 15 years, the mobility scenario will profoundly change, with ACES trends—autonomous driving, connected cars, electric vehicles, and shared mobility—amplifying their influence. According to a global management firm, Mckinsey, the dynamic landscape gives a great opportunity for Indian automakers to lead the disruptive changes occurring across categories and achieve a competitive edge.

Currently, only approximately 2% of new vehicles sold globally are electric.

The new eco-friendly trend is Electrical Vehicles (EV’s)

According to research conducted by the CEEW Centre for Energy Finance, there are $206 billion in the potential for electric cars in India by 2030. This will demand an expenditure of US$ 180 billion in car manufacture and charging infrastructure.

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EV component manufacturers, electric commercial vehicles, and last-mile delivery businesses spent a total of Rs. 25,045 crore (US$ 3.67 billion) on electric cars between January and July 2021. Technology and automotive businesses have indicated an interest in, and made investments in, the India EV market. In the fast-growing digitalisation, this is the third trend D2C marketing channels

The year 2022 is expected to see a significant increase in internet sales and the D2C business model. As a result, an increasing number of car dealerships will shift to digital media and online sales. Overall, the hybrid business model will have greater penetration in automotive sales. This might gradually erode traditional physical dealerships' market share.