Indian auto industry to touch $300 billion by 2026

According to a report, Vision 2026, prepared by the ICRA Management Consulting Services (IMaCS), a fully-owned subsidiary of ICRA Limited, one of India’s leading credit rating agencies, revenues of the Indian automobile industry will rise five-fold to $300 billion by 2026, while sales figures are likely to cross 76 million units over the same period, a 3-fold increase. Commercial vehicle sales are expected to 3.9 million units from 0.7 million in FY14; two-wheelers to 55.5 million units from 16.9 million, and three wheelers to 3 million units from 0.8 million units. Export revenues are expected to touch $ 40 billion by 2026 from $ 8 billion in FY14, while component exports will likely rise to $ 74 billion from $ 10 billion in FY14. Commercial vehicle sales will rise to 3.9 million units from 0.7 million in FY14; of two-wheelers, to 55.5 million units from 16.9 million, and of three wheelers to 3 million units from 0.8 million units. Proportion of A and B segments (compact cars) are expected to rise sharply in the next decade. Implementation of GST, creation of infrastructure, ban on overloading in commercial vehicles and urban planning are some factors which would help the industry grow in the next 10 years.