The Automobile industry manufactures 26 mn vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers in FY 2019-20. India is the largest tractor manufacturer, second-largest bus manufacturer and third largest heavy trucks manufacturer in the world. As of 2019, India is the 4th largest automobile market in the world, surpassing Germany in terms of sales. Out of 26.36 mn vehicles manufactured in FY 2019-20, India has exported 4.77 mn. India is expected to emerge as the third-largest Automotive market in the world in terms of volume by 2026, followed by China and USA. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles and National Electric Mobility Mission Plan (NEMMP 2020) have been initiated with an aim to support hybrid/electric vehicles market development and ecosystem. It employs approximately1.30 million people in India in 2017 and % of GDP contribution in year 1992 was 2.77% against 7.1% in Year 2019.This Industry has direct impact on employment generation. Factors supporting this Industry are Growing per capita income of citizens in India and having high percentage of young generation in entire population. Current Government policies like Atmanirbhar Bharat Abhiyaan - Self Reliant India and Production-Linked Incentive (PLI) Scheme helps to grow manufacturing facilities and results into high FDI equity inflow received by the Automobile Industry in FY 2019-20 is valued at USD 2.82 Bn. With this study, Researcher wants to find out the factors affecting manufacturing and supporting facilities in India which will impact on its export and attract foreign currency which will boost employment and GDP.

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Keywords: Automobile Industry, Passenger Vehicles, Commercial Vehicles, GDP, FDI, PLI.