EV Push And Job Boom To Propel Indian Auto Industry’s Growth, Says Report

Hyderabad has seen a surge in employment, supported by government initiatives promoting start-ups and entrepreneurship. The state government’s focus on IT and ITES has played a crucial role in job creation

India's automotive sector is expected to witness positive growth in the coming year, driven by supportive government policies and a growing job market, according to a report. The primary reason behind the growth is the impact of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme, which has been in effect since April 2019.

This policy encourages states to offer financial and non-financial incentives to boost the adoption of electric vehicles (EVs), contributing to the sector’s expansion. According to data analytics firm GlobalData report, about 24.7 per cent of these cities are likely to experience strong growth in the automotive sector, while 49.5 per cent are expected to see moderate growth.

Cities like Mumbai, Hyderabad, and Pune are among those projected to thrive. On the other hand, about 7.5 per cent of cities may see stagnant growth, while 9.7 per cent and 15.5 per cent could experience moderate and pessimistic declines, respectively. Chandigarh is one of the cities expected to face challenges in automotive growth. Hyderabad and Mumbai, in particular, are well-positioned for expansion due to their growing service sector and job opportunities.