TL;DR
The Indian automotive industry is a major economic driver, contributing over Rs 22.75 lakh crore to the economy and employing 30 million people, with record sales in FY2025-26.
According to Shailesh Chandra, President of the Society of Indian Automobile Manufacturers (SIAM), the Indian automotive industry remains a critical engine for the nation's economic growth. Addressing the annual SIAM convention on Thursday, Chandra highlighted the sector's substantial contribution, exceeding Rs 22.75 lakh crore to the economy and accounting for approximately 15 percent of India's GST collections.
The industry provides direct and indirect employment to over 30 million people, demonstrating a significant multiplier effect across various allied sectors and the broader supply chain. The fiscal year 2025-26 witnessed robust growth in both domestic sales and exports, with passenger vehicle sales reaching a record 4.6 million units and two-wheeler sales hitting an unprecedented 21.71 million units. Electric mobility also gained traction, with total EV registrations increasing by 24.7 percent to 2.5 million units in FY2025-26.
