The Indian auto industry is one of the largest in the world. The industry accounts for 12% per cent of the country's Gross Domestic Product (GDP) as per AMP 2016-2028. By 2026, passenger vehicles likely to increase between 9.4 - 13.4 million units, commercial vehicle between 2.0 - 3.9 million units, two wheeler to grow to 50.6 - 55.5 million, and tractors to 1.5 - 1.7 million units. The Two Wheelers segment with 81 per cent market share is the leader of the Indian Automobile market owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 13 per cent market share. AMP 2016-2028 aims to make Indian automotive industry to be the engine of 'Make in India' initiative.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In April-January 2016, exports of Commercial Vehicles registered a growth of 18.36 per cent over April-January 2015. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020.