Table of ContentsMarket SizeGovernment InitiativesThe Road Ahead The Indian automobile industry is one of the largest in the world. The industry accounts for 7.1 percent of the country's gross domestic product (GDP). The two-wheeler segment, with a market share of 80 percent, is the leader in the Indian automobile market due to a growing middle class and young population. Additionally, growing corporate interest in exploring rural markets has further contributed to the growth of the sector. The overall passenger vehicle (PV) segment holds a market share of 14%. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the Original Essay India is also a leading automobile exporter and has high expectations for its export growth in the near future . Overall automobile exports grew by 13.01% year-on-year between April and December 2017. Additionally, several initiatives by the Indian government and major automobile players in the Indian market are expected to make India a leader in the field of 2W and 4-wheelers (4W) worldwide by 2020. Market sizeThe production of passenger vehicles, utility vehicles, three-wheelers and two-wheelers increased by 11.27% year-on-year between April and December 2017 for reach 21,415,719 vehicles. Sales of passenger vehicles and two-wheelers increased by 5.22% and 40.31% year-on-year respectively in December 2017. The automobile industry is expected to witness major changes in the form of electric vehicles (EVs), Shared Mobility, Bharat Stage-VI Emission and Safety Standards. Electric cars in India are expected to get new green number plates and could also benefit from free parking for three years as well as a toll waiver. Electric vehicle (EV) sales in India grew 37.5 percent to 22,000 units in fiscal 2015-16 and are poised to rise further on energy storage costs lower prices and the Indian government's vision of seeing six million electric and hybrid vehicles in India by 2020 Investments In order to meet the growing demand, several automobile manufacturers have started investing heavily in various segments of the industry over of the last few months. The industry attracted foreign direct investment (FDI) worth $17.91 billion between April 2000 and September 2017, according to data released by the Department of Industrial Policy and Promotion (DIPP). Some of the recent/planned investments and developments in the automobile sector in India are as follows: India's only electric car maker Mahindra and Mahindra Ltd have partnered with Uber to roll out its e-Verito electric sedan and e2o electric sedan More about Uber platforms in New Delhi and Hyderabad. Vedanta Resources Plc plans to invest around $9 billion in India and create over one million direct or indirect jobs in the country. Government Initiatives The Indian government encourages foreign investment in the automobile sector and allows 100% FDI through the automatic route. Some of the recent initiatives taken by the Government of India are: The Government of Karnataka will acquire electric vehicles under the FAME scheme and set up charging infrastructure across Bengaluru, according to Mr. RV Deshpande, Minister for Large and medium industries of Karnataka. The Ministry of Heavy Industries, Government of India, has selected 11 cities in the country for the introduction of electric vehicles (EVs) in their transport systems. 4, 2018