2026年制造手册：印度汽车产业战略指南

INDIA'S

BEST

EMPLOYERSs.t··a.t.·s.·t·a···2025

INTELLIGENTINVESTMENT

EATYNCAE&ARD

22

wo

REALESTATE

India'sautomotivesectorhaslongbeenanchoredbythescaleofits

domesticmarketandawellestablishedmanufacturingbaseacrossvehiclesandcomponents.Thatfoundationisnowbeingcomplementedbystrongerexports,wideraccesstooverseasmarketsandexpansionacrossEVS,

batteriesandadvancedcomponents,broadeningboththeproductionmixandintegrationwithglobalvaluechains.

CBREResearch's2025ManufacturingManualexaminedthewider

modernisationofIndia'sindustrialecosystemandthefactorsinfluencing

manufacturinginvestmentandlocationdecisions.Thissecondedition

focusesontheautomotivesector,tracingactivityacrossleadingstatesandclustersandexamininghowtechnology,supplychainsandexport

orientationareinfluencingrealestaterequirements.

IndiaalreadyhasconsiderabledepthinICE*vehicleassemblyand

conventionalautocomponents.Evmanufacturingaddsanotherlayer,withgreaterscopeforlocalisationacrossbatterycells,powersemiconductors,criticalmineralsandrelatedtechnologies.Thiswidermanufacturingbaseiscreatingmorevariedrequirementsforindustrialland,utilities,supplieraccess,logisticsinfrastructure,facilitiesandworkforcecapabilities.

Locationdecisionsarealsobecomingmoremultidimensional.MatureoEMandsupplierecosystemsremainimportant,butconnectivity,industrialreal

estateavailability,infrastructurereadiness,utilitiesandeaseofexecutionarealsocritical.Thereportbenchmarksleadingautomotivestatesacross

thesefactorsandsetsoutprioritiesforoccupiers,developersand

policymakers.Takentogether,theanalysisreflectsasectorstillrootedindomesticdemand,butwithastrongerexportorientationandawider

technologybase.

3CBRERESEARCH©2023CBRE,INC.

CreatingResilienceAnnualESGReport2022

India'SAutomotive

opportunity

4CBRERESEARCH©2023CBRE,INC.

5CBRERESEARCH©2026CBRE,INC.

Indiavs.APAcpeers

India'shasadomestic-firstautomotiveecosystemwhereexportscomprisealimitedshareoftotalproduction.CBREhasbenchmarkedIndiaagainstsoutheastAsianpeerssuchasvietnam,ThailandandIndonesiabecausetheysitatadirectlycomparablestructuralinflectionpoint.AsglobaloEMassetallocationsshiftunderaccelerating"china+1"diversificationandregionalEvsupply-chainrealignments,India,vietnam,

Thiscomparisondeliberatelyexcludesestablishedautomotivepowerssuchaschina,Germany,orJapan,becausetheyhaveafundamentallydifferentmarketstructurewhereautomanufacturingisbuiltaroundglobalexportscaleanddecadesofentrenchedsupplychaindepth.

OPENINGOUTWARD:Indiaistakinginitialstepstowardsmorereciprocalautomotivetrade.Forinstance,undertheIndia-EUFreeTradeAgreement,EutariffsonIndianEvswillphasedowntozeroovertenyears,whileIndiawillreduceitscartariffsfrom110%to10%underaquotaandeliminatetariffsoncomponentsoverfivetotenyears.

FROM

OPENlNGEXPORTZONES:TheunionBudget2026-27introducedatime-boundmeasure(effectiveApril2026toMarch2027)

Highautotariffs+strictsEznorms

permittingeligiblesEzunitstosellacappedportionoftheiroutputintothedomestictariffarea(DTA)atconcessionalcustomsdutyrates.whilethisprovidesimmediaterelieftoaffectedunits,thebroadersEZ2.0reformaimstopermanentlyrepositionsEzsashybrid'DevelopmentHubs'servingbothdomesticandexportmarkets.

IntelligentInvestmentManufacturingManual2026:InsideIndia’sAutomotivePlaybook

6CBRERESEARCH©2026CBRE,INC.

lndiavs.APAcpeers

INDIA

INDONESIA

THAILAND

VIETNAM

Domestic

consumption+

Exportorientation

~81%ofvehicleproduction(20+millionunits)wasabsorbed

domesticallyinFY20261

Domesticdemandled,relativelylowlocalisation;…70%ofcy2023vehiclesaleswereassembledinvietnam,butonly20%containedlocalparts2

strongregionalexportbasewithmoderatelocaldemand;~58%inJan-Jun2026:production

717,212units/421,144units

exported(broadlyconsistent%shareasJanJun25)3

Exportoriented,withastrong

componentbase;total2025

automotiveproductionvolume:~1.15millionunits,Exportvolume:CBU4518,212units,CKD563,263units,

…142billioncomponentpieces

17FTAswith50+nations1o

RCEP(RegionalcomprehensiveEconomicpartnership)covers

17FTAswith24partners

Motorvehiclesfortransporting

goodswereamongthefiveproductcategorieswiththehighestuseofFTAprivilegesinApril2026.key

agreementsincludeATIGA

(ASEAN),ACFTA(ASEAN-china),AIFTA(ASEANIndia),JTEPA

(Thailand-Japan)andTAFTA(ThailandAustralia)

20FTAS13

underATIGA(ASEAN),cars

importedfromASEANenjoyzeropercentimportdutyuntil20271u

9FTAscovering38countriesIndia-UKCETAinforcesinceJuly2026(providingzero-duty

accessfor~…99%ofIndia's

exports);calibratedautomotiveliberalisationthroughIndia-EU

FreeTrade

Agreement(FTA)strategy

ASEANcountries,china,Japan,southkorea,Australia,andNewzealand.Itstariffadvantages

includeharmonisingRulesoforiginacrossall15-memberstates1o

FTA(Jan2026)providingaccesstotheEumarket,withautotariffsreducingfrom110%to10%over

time,componentstozero)

source:1.Automobiles,IndiaBrandEquityFoundation,February2026;2.vietnamAutomotiveIndustryin2025:Growth,TariffImpactsandoutlook,vietnamBriefing(Dezanshira&Associates),May2025;3.TheThaiAutomotiveIndustryAssociation,Aug2026:4.CBU(completelyBuiltunit)Afullyassembledvehicleexportedasasinglepiece;5.CKD(completelyknockedDown)Anunassembledvehiclekitofparts/componentsexportedwhichisthenassembledinthedestinationcountry'slocalfactory:6.IndonesianAutomotiveIndustryData(GAIKINDO),December2025:7.India'sachievementsinFreeTrade

Agreementsfortheyear202526,PIB,Mar2026:8.IndiaUKCETAcomesintoEffect;PIB,July2026;9.IndiaEUFreeTradeAgreementconcluded:AstrategicBreakthroughinIndia'SGlobalTradeEngagement,PIB,January2026;10.TheDefinitiveGuidetovietnam's17ActiveFreeTradeAgreementsFTAsin2026,April2026;11.ThailandsecuresLandmarkTradeExpansionwith17GlobalAgreementsinTotal,TheGovernmentpRDepartment,Dec2025;12.Thailand'sexportsbenefitfromgrowinguseofFTAprivileges,vietnamplus,July2026;13.IndonesiaHas20ForeignTradeAgreements,IncludingthecEPAandFTA,CNNIndonesia,oct2025;14.carsimportedfromASEANenjoyzeropercentimportdutytill2027,ThesocialistRepublicofvietnamGovernmentNews,January2023

IntelligentInvestmentManufacturingManual2026:InsideIndia’sAutomotivePlaybook

7CBRERESEARCH©2026CBRE,INC.

lndiavs.APAcpeers

INDIA

VIETNAM

THAILAND

INDONESIA

costofIndustrialLand

~USD1.712.12million/acre

acrossestablishedpuneMIDCallotments,privatelandinpune~USD2.13.7million/acre1

Tier-1NorthernRegion4-USD143/sq.m./remainingterm1

Tiermm1southernRegion4mmUSD

185/sq.m./remainingterm1

~USD152,000425,300/raifor

servicedIndustrialLandplot(SILP)intheEasternEconomiccorridor(EEC)area(chonburiandRayong)1

~USD85.7-194/sq.macross

cikarang,karawang,purwakarta,cikampek,subang

25.17%standardrateaspersection115BAA2

20%standard,however,ratesaslowas10%17%forupto15yearsfor

automotive&ancillarydependentonprojectscale,location,and

eligibilitycriteria5

Flat20%,withBOI(boardof

investment)exceptionsofupto13yearsforselected/targetedeligiblebusinessactivitye.g,R&D

22%withupto50%CIT

reductionorfullexemption(upto20years)forpioneersectors

corporateIncomeTax(CIT)

Landownership

Hybrid:Freehold(privateland)andleasehold(SEZS/industrialzones)1

Land-userightsthroughland

leasearrangements,through

state/subleasesfromindustrialparkdevelopers(5070years)

Leasehold,butincludesBollandmm

ownershiprightsforpromotedprojects1

Allcompanies(domesticandforeignowned)entitledforHGB(similartoleasehold)rights,HMro(freehold)

rightsonlyforlocalindividuals

FDlinManufacturing

100%automaticroutefor

automotive/EV3

100%foreignownershipinmostmanufacturingsectors,subjecttoapplicablelicensingand

regulatoryrequirements

100%permittedforBol

promotedprojects(appliestobothThaiandforeignmmownedcompanies)1

100%permittedforpTPMAnstructures

Largestdomesticdemandbase

andpLlincentives;statemmlevelvariationremainsachallenge

Lowerunitcostandfasterof

industrial-parkturnaround,but

cappedlandtenureandrisingrents

strongesttaxholidaystructure,butsmallerdomesticmarket

Largestdomesticmarketin

ASEAN,butwithlongerlogisticsleadtimestoglobalports

source:1.CBREResearch,H120262.IncomeTaxDepartment,GovernmentofIndia,AY2026273.RevolutionizingMobility,Ministryofcommerce&Industry,March20254.Tier1NorthernRegionincludesHanoi,Haiphong,HaiDuong,HungyenandBacNinh&Tie1southernRegionincludesHCMC,BinhDuong,DuongNai,LongAn;5.vietnamcorporateTaxesoncorporateincomeandvietnamcorporateTaxcreditsandincentives,pwc,March2026:6.Bui,N.A.andpham,T.(2025).ExpiryofLanduseprojectswithaTermof50yearsorLess.VILAF,July2025;7.worldwideTaxsummaries,pwc,March20268.

,CBREResearch;9.HGBstandsforHakGunaBangunan(Indonesianfor"RighttoBuild")10.HMstandsforHakMilik(Indonesianfor"Righttoown")11.PTPMA(perseroanTerbataspenanamanModalAsing)isIndonesia'sstandardforeignownedlimitedliabilitycompany

structure.underthecountry'spositiveInvestmentList,itallowsupto100%foreignequityorrequiresalocaljointventurepartnerdependingonthesector.

IntelligentInvestmentManufacturingManual2026:InsideIndia’sAutomotivePlaybook

8CBRERESEARCH©2026CBRE,INC.

Buildingonitslargedomesticmanufacturingandsalesbase,India'sautomotiveexportscontinueto

strengthen,withtotalexportvaluereachingarecord⃞USD26billioninFY2026,up14.7%year-on-year(y-o-y).production-linkedincentives,awidernetworkoffreetradeagreements(FTAS),andrisingoverseasdemandforelectricandsmartmobilitysolutionshavealsocontributedtothis

momentum.

ExportMomentum

•Theautomotivesector'sshareofIndia'soverallexportshastracedaconsistentupwardtrajectory,from4.7%inFY2022toabout5.9%inFY2026.

•Exportsofpassengervehiclesreached9.05lakhunitsinFY2026,up17.5%y-0-y,whiletwowheelerexportsrose23.4%toabout51.8lakhunits.

•Q1FY27Evexportsreached~10,800units,amorethan7-foldincreaseoverthepreviousyear.

keyExportcorridors

EstablishedDemandMarkets

•APAC:Largestexportdestinationwithestablishedregionaltradeintegration•Americas:strongdemandforpassengervehiclesandcomponents

•Africa:GrowingdemandforaffordablemobilitysolutionsEmergingopportunities

•MiddleEast:widermarketaccessthroughtheuAECEPAandomancEPA

•Uk&Europe:ImprovedaccessthroughukcETAandengagementwithEFTA•LatinAmerica:GrowingacceptanceofIndia-manufacturedvehicleplatforms

Boththeseregionstogetheraccountedforovertwo-thirdsofautomotive

exportvalueoverthepastfiveyears

DomesticdemandremainsthefoundationofIndia'sautomotiveindustry,whileimprovingexport

competitivenessandexpandingFTAsarebroadeningopportunitiesacrossvehicles,componentsandemergingmobilitytechnologies.

source:Departmentofcommerce,MinistryofcommerceandIndustry,August2026;CBREResearch,H12026

Figure1.1:India'sautomotiveexportvaluebydestinationregion(FY2021toFY2026)

TOP10countries'automotiveexportbyvalue(FY2026)

USD~26billion

Mexico

saudiArabiaJapan

Brazil

sriLanka

mmAmericasEUAfricaAPACShareofIndia'soverallexports(%)

USA

southAfricaUAE

colombiaGermany

IntelligentInvestmentManufacturingManual2026:InsideIndia’sAutomotivePlaybook

9CBRERESEARCH©2026CBRE,INC.

India'sautomobilesectorhasdevelopedintooneoftheworld'slargestmanufacturingecosystems,rankingfourthgloballyinvehicleoutput,withproductionreaching35millionunitsinFY20261.concurrently,vehiclesalestouchednearly28millionunitsinFY20261,furtherdemonstratingthescaleofthedomesticmarket.Thebroaderautomotivesectorcontributesapproximately7.1%2toIndia'SGDpand~49%2ofmanufacturingGDP,

underscoringitssignificancewithinthecountry'sindustrialeconomy.

Inadditiontoitsscale,trendssuchaspremiumisation,electrification,andsupplychaindiversificationarebroadeningthesector'smanufacturingandtechnologicalcapabilities.InitiativessuchastheproductionLinkedIncentive(PLI)schemeandpMEDRIVE*areacceleratingdomesticmanufacturingofadvancedautomotivetechnologies(AAT)andtheexpansionofelectricvehicle(EV)infrastructure.Furthermore,India'sauto

componentsindustryisincreasinglyintegratedintoglobalvaluechains(GVCS),particularlyinadvancedpowertrains,subassemblies,andcleanmobilityplatforms.

Figure1.2:keystatisticsonIndia'sautomobileandauto-componentsectors

2nd

1st

USD6obillion

49%

r65million

3rd

USD200billion

USD85.9billion

3%

source:1.AutomobileIndustryReport,IBEF,May2026;2.AutomotiveIndustry:poweringIndia'sparticipationinGlobalvaluechains(GVCS),NITIAayog,April20253.RevolutionizingMobility,Ministryofcommerce&Industry,March2025;4.MinistryofRoadTransport&Highways,PIB,september2025

5.AutocomponentsIndustryinIndia,IBEF,May2026:6.ACMA,July2026

Note:Theterm"Automotive"refersbroadlytomotorvehiclesandthewiderindustryencompassingtheirdesign,development,manufacturing,marketing,andmaintenance."Automobile"refersmorespecificallytoaselfpropelledroadvehicleusedtotransportpeopleorgoodsand,incommonusage,oftendenotespassengercars.I*PME-DRIVE-primeMinister'SElectricDriveRevolutioninInnovativevehicleEnhancement

IntelligentInvestmentManufacturingManual2026:InsideIndia’sAutomotivePlaybook

10CBRERESEARCH©2026CBRE,INC.

LeadDomesticAutomobile

sales

Inadditiontotheimprovementinthemanufacturingandexportsscenario,domesticdemandremainedfirm,evidencedbythestrongsalesrecordedinthepreviousfiscalyear.Maharashtraanduttarpradeshaccountedforthelargestsharesofstate-levelregistrations,whilethetopsixstatestogetherrepresented52%ofthenationaltotal**.

Figure1.3:Indianautomobileproductionandsales(FY2020-FY2026)

4%3%

CAGRintermsofrevenueinautomotivesectorby

FY2030

TWO-wheelers

RemainedthelargestsegmentinFY2026witha77%share

wcommercialvehiclesThree-wheelers

segmentwiseshareof

domesticsales

(AprilDec2025)

TWO-wheelerspassengervehicles

uNO.ofunitsproducedinIndia(inmn)uNO.ofunitssoldinIndia(inmn)

source:AutomobileIndustryReport,IBEF,May2026

source:AutomobileIndustryReport,IBEF,May2026

source:CBREResearch,H12026I**NationalautomobilesalesarebasedonsIAMreporteddomesticsales,whilestatewisesharesarebasedonvAHANvehicleregistrations.

IntelligentInvestmentManufacturingManual2026:InsideIndia’sAutomotivePlaybook

11CBRERESEARCH©2026CBRE,INC.

illionunits1inFY2026.ThesegmentisgainingscaleasautomakersexpandtheirEvportfolios,

thepublicchargingnetworkgrows,andeffortstomanufacturebatteriesandkeycomponentslocallygatherpace.EvadoptionisalsobeingsupportedbylowerrunningcostsrelativetoICEvehiclesandrisingfuelprices,withelectricpassengervehiclesalesincreasingby~64%y-o-yduringJanuarytoMarch20262.Meanwhile,Evpenetrationinthepassengervehiclesegmentincreasedto-6.5%inQ1FY2027from-4.6%duringthesame

periodinFY20263·

Figure1.5:India'SEvsector:keyindicators

Figure1.6:DriversofEvadoptionandlocalisationinIndia

100%FDIpermitted

productionscalability

Large-scaleexpansionplansbyoEMSGrowthinEVInfrastructure

LocalisationofEvbatterychain

Lowertotalcostofownership(TCO)climateconsiderations

passengervehicles,ICRA,July2026;4.TheRiseofIndia'SElectricvehiclesEcosystem,PIB,August2026;5.Ministryofcommerce&Industry,August2026;6.chargingstationsforElectricvehicles,MinistryofHeavyIndustries,July2026;7.RevolutionizingMobility,Ministryofcommerce&Industry,March2025;8.publiclyavailableinformation,August2026;9NITIAayogeAMRITHomechargingcalculator,August2026;10.Theunioncabinet,PIB,March2026;11.MinistryofHeavyIndustries,February2026INote:FAME=FasterAdoptionandManufacturingofElectricvehicles;PLIAccrepresentsAdvancedchemistrycellsI*TheabovecalculationforICEvehiclesincludesonlypetrol&diesel,CNGisexcluded.

IntelligentInvestmentManufacturingManual2026:InsideIndia’sAutomotivePlaybook

12CBRERESEARCH©2026CBRE,INC.

segments

DomesticEVSalesreachedaround25million1unitsinFY2026,reflectinga24%Y-o-yincreaseuttarpradeshandMaharashtraaccountedforthelargestproportionsofstate-levelEVSales·Electrictwo-wheelersremainedthedominantcategory,comprisingabout56%ofregistrations·ThesetrendscollectivelydemonstrategrowingconsueracceptanceandsustainedmarketgrowthofEvsinthecountry·

~78%

CAGRinIndia'SEvregistrations(FY2021FY2026*)2

Figure1.7:EvproductioninIndia(2019-2023)

瑞usp14bn

InvestmentsinEvsectorinFY252

projectedcAGRintermsofvalueforIndia'SEvmarket(2025mm2034)2

GrowthinEvsalessince20162

20192020202120222023

source:1.AutomobileIndustryReport,IBEF,May20262.RoadsReimagined:TheRiseofIndia'SElectricvehiclesEcosystem,PIB,August2026INote:*asofJuly2026

Figure1.8:vehiclecategory-wiseshareofregisteredEVS(2018-March2026)

E3wpassenger

Figure1.9:state-wiseshareofEvsales(2018-March2026)

uttarpradesh

karnataka

Rajasthan

Delhi

Bihar

others

othersincludeGujarat,Telangana,kerala,andAssam

source:IndiaEVMarketAnnualReport,JMKResearch&Analytics,March2026

IntelligentInvestmentManufacturingManual2026:InsideIndia’sAutomotivePlaybook

whileIndiahasdevelopedamatureandhighlylocalisedICEmanufacturingecosystem,Evmanufacturingismovingtowardsamoreintegratedecosystem.Thenextphaseofgrowthliesinbuildingthecapabilitiesin

batterycells,semiconductorcomponents,andcriticalminerals.Toacceleratethistransition,theGovernmentofIndiahasintroducedtargetedinitiativesfocusedonbatterymanufacturing,semiconductorproduction,and

criticalmineralsecurity,layingthefoundationforamoreintegratedandselfreliantEvmanufacturingecosystem.

ICEvehicleEcosystem

USD85.9billioniIndianautocomponentindustry'sturnoverduringFY2026

salestodomesticoEMS

Increasedby10.5%totouchusD~75billion1inFY2026

strongdomesticmanufacturingcapabilities

Enginecomponents

DriveTransmission&steering

Body/chassis

Electricals&Electronics

suspension&Braking

Interiors(non-electronic)

Figure1.10:comparisonofIndia'SICEandEvmanufacturingecosystems

IndiasemiconductorMission

INRl1.27lakhcrore5

Buildingsemiconductor&

electroniccapabilitiesforEVpowertrain&vehicle

electronics

NationalcriticalMineral

ModeratelImportDependency

HighImportDependency

LOWImportDependency

vehicleassembly,chassis,wiring,andmechanicalhousings

Motors,controllers,

inverters,and

chargers

Batterycells,

magnets,andcriticalminerals

EvvehicleEcosystem

~30-40%Evvaluechainlocalised2

~75%Batterycellsimported3

~90%power

semiconductorsimported4

Enablingthenext

phaseofEV

localizationthrough

ACCBatterypLlscheme

INRl8,000crore

supportingdomesticbatter