§1How big it is
Automobile sector contributes approximately 6% of national GDP; auto industry turnover about USD 240 billion
PIB backgrounder (Ministry of Commerce): Revolutionizing Mobility - The Make in India Auto Story (25 Mar 2025)Auto component sector: 2.3% of GDP, 1.5 million direct jobs, turnover Rs 6.14 lakh crore (USD 74.1 billion) in FY24; exports USD 21.2 billion in FY24
PIB backgrounder (Ministry of Commerce): Revolutionizing Mobility - The Make in India Auto Story (25 Mar 2025)4.4 million EVs registered, 6.6% market penetration (as of the Mar 2025 PIB note)
PIB backgrounder (Ministry of Commerce): Revolutionizing Mobility - The Make in India Auto Story (25 Mar 2025)
§2Ways to get started
- Tier-2/3 machining or sheet metal for a tier-1 supplier
- Wiring harness assembly
- EV charger assembly and installation
- E-rickshaw / L5 three-wheeler assembly (needs type approval)
- Aftermarket parts and battery swapping service
§3Hubs and clusters
- Chennai, Pune, NCR (Gurgaon-Manesar), Sanand (Gujarat) - well-known automotive belts (not confirmed from an official list in this pass)
§4Licences and registration
- Type approval / homologation from ARAI, ICAT or other test agencies under CMVR (for vehicles and safety-critical parts)
- BIS certification for notified auto items under QCO
- IATF 16949 quality certification (expected by OEMs)
- EV batteries: AIS-156 / AIS-038 safety standards; Battery Waste Management Rules 2022 EPR registration
- Udyam Registration (MSME) - free, online, PAN + Aadhaar based
- GST registration (mandatory above turnover threshold or for inter-state supply / e-commerce sale)
- Shops & Establishment registration or Factory Licence (Factories Act / state rules) depending on size and power use
- Consent to Establish and Consent to Operate from the State Pollution Control Board - category (Red/Orange/Green/White) as per CPCB 2025 harmonised list; White category is exempt from consent
- IEC (Importer Exporter Code) from DGFT if you import or export
§5Regulators
- Ministry of Heavy Industries
- MoRTH (Central Motor Vehicles Rules, type approval via ARAI/ICAT)
- BIS (QCOs on some components, e.g. tyres, helmets, safety glass)
§6Government help
- PLI Scheme for Automobile and Auto Components (PLI-Auto, notified 23 Sep 2021)
- PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage (notified 12 May 2021)
- PM E-DRIVE (EV demand incentives and charging)
- PM e-Bus Sewa
- Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)
- Cross-sector schemes that also apply (detailed in the programmes file): Udyam benefits, PMEGP, PM Mudra Yojana, CGTMSE credit guarantee, Stand-Up India, MSE-CDP (cluster development), RAMP, MSME ZED and Lean certification, MSME Champions, TReDS, Startup India (SISFS seed fund, Fund of Funds, CGSS), RoDTEP, EPCG, Advance Authorisation, Districts as Export Hubs, ODOP (One District One Product)
§7For exports
- EEPC India
- ACMA (industry association, not an EPC)
§8Pros and cons
Merits
- Large, export-linked supplier base - exports 18% of component turnover [PIB Mar 2025]
- EV transition creates new part categories (motors, controllers, chargers)
- China Plus One trend cited by government for localisation [PIB Mar 2025]
Demerits
- OEMs squeeze prices yearly; quality audits (IATF, PPAP) are costly
- EV policy and subsidy changes affect demand
- Battery cells and electronics remain import-dependent
