Indian automobile industry: Cars, manufacturing, and what’s next in 2025

The Indian automobile industry, the network of companies designing, building, and selling vehicles across India, from budget hatchbacks to premium SUVs and electric cars. Also known as the automotive sector, it’s one of the largest manufacturing engines in the country, employing over 30 million people and contributing nearly 7% to India’s GDP. This isn’t just about cars on the road—it’s about factories in Gujarat, supply chains in Tamil Nadu, and engineers in Pune making decisions that shape global trends.

The Made in India cars, vehicles built with over 90% local parts and assembly, often under government incentives like PLI schemes. Also known as indigenously manufactured vehicles, they’re no longer a niche idea—they’re the norm. Brands like Mahindra, Tata, and Maruti now produce models where over 95% of components come from Indian suppliers. Meanwhile, foreign giants like Hyundai, Toyota, and Kia have built massive plants here because they know India isn’t just a market—it’s a production hub. The electric vehicles India, the fast-growing segment of battery-powered cars, scooters, and three-wheelers being adopted across cities and rural roads. Also known as EVs in India, this sector is exploding thanks to falling battery prices, state subsidies, and charging infrastructure pushing past 10,000 stations nationwide. You can’t talk about the Indian automobile industry today without talking about EVs—because they’re rewriting the rules.

What’s driving this change? It’s not just policy. It’s cost. It’s scale. It’s the fact that Indian manufacturers now build cars cheaper and faster than almost anywhere else. And it’s the consumer who’s finally demanding better quality, smarter tech, and cleaner options. The car manufacturing in India, the end-to-end process of designing, sourcing, assembling, and testing vehicles within the country’s borders. Also known as automotive production in India, now includes robotics, AI-driven quality checks, and real-time supply chain tracking—tech once reserved for Germany or Japan. The biggest players aren’t just selling cars—they’re building ecosystems. From battery recycling units in Bengaluru to software updates over the air in Delhi, the industry is becoming more like Silicon Valley than a traditional factory floor.

But here’s the real question: who’s winning? Is it the homegrown brands that know Indian roads best? Or the global giants that bring in billions in investment? The answer isn’t one or the other—it’s both. And the next five years will decide who leads the next wave: fully electric, fully connected, and fully Indian-made.

Below, you’ll find real data, real breakdowns, and real stories from the factories, showrooms, and garages that keep the Indian automobile industry moving. Whether you’re curious about which cars are truly 100% made in India, who’s leading the EV charge, or why manufacturing growth still faces hurdles—you’ll find the answers here, no fluff, no guesses, just facts from the ground.