India Surpasses China in Two-Wheeler Sales 2023

India has witnessed a remarkable surge in two-wheeler sales, driven largely by the growing reach of entry-level two-wheeler manufacturers in rural areas. This growth helped India surpass China in two-wheeler sales in 2023. According to SIAM, India registered 17.1 million two-wheelers last year, compared to 16.6 million sold in China, based on government data.

The Indian government has taken several initiatives to boost the automobile sector. On September 15, 2021, the Production-Linked Incentive (PLI) scheme was launched with a budget allocation of ₹25,938 crore. The scheme aims to promote the domestic production of Advanced Automotive Technology (AAT) products and attract investments in the sector. According to Union Minister H.D. Kumaraswamy, five two-wheeler companies had received approval under this scheme by November 26, 2023. Advanced Automotive Technology two-wheelers are eligible for incentives ranging from 13% to 18% of the determined sales price.

To support battery manufacturing, the government introduced another PLI scheme for Advanced Chemistry Cells with a budget of ₹18,100 crore, approved on May 12, 2021. This initiative aims to establish a production capacity of 50 GWh for batteries. Additionally, efforts to promote electric vehicles (EVs) include a March 15 scheme allowing approved applicants to import fully built electric passenger cars at a reduced 15% customs duty for five years, facilitating the establishment of EV manufacturing plants.

By November 28, 2023, the PLI-Auto scheme had approved 82 applicants, covering numerous manufacturing facilities and engineering research and design units across the country. These measures are expected to accelerate the growth of India’s automobile sector, generate employment opportunities, and strengthen the economy. The combined impact of rising rural demand and supportive government policies indicates a promising future for India’s automotive industry.