AUTO & AUTO COMPONENTS

INDIA LANDSCAPE

Key National Strategic Priorities

Largest Automobile Market in the World

Largest Heavy Truck Manufacturer

Largest Car Manufacturer

India’s automotive industry has an estimated turnover of about US$240 billion and is expected to reach approximately US$300 billion by 2026.
India’s auto-component industry was valued at approximately US$86 billion in FY2025-26, with exports of about US$24 billion.
India is the world’s largest market for two-wheelers and three-wheelers, and the third-largest market for passenger and commercial vehicles combined.
India is the world’s third-largest manufacturer of heavy trucks.
India is among the world’s top four passenger-vehicle manufacturers.
The automobile sector contributes approximately 6% to India’s GDP.
India’s EV market was valued at approximately US$3.71 billion in 2025 and is projected to reach US$191.04 billion by 2034.
The automobile sector received cumulative equity FDI of approximately ₹2.70 lakh crore, or US$40.31 billion, between April 2000 and March 2026.
The Indian automobile industry supports more than 30 million direct and indirect jobs

Rajasthan Landscape

Rajasthan is an attractive destination for the automobile and electric vehicle (EV) sector due to its strategic location, robust infrastructure, and supportive government policies.

Rajasthan was among India’s top seven states for electric two-wheeler sales in FY2024-25, with approximately 5% share.
Rajasthan accounted for approximately 7.6% of India’s motor vehicle/car exports in FY2024-25

Rajasthan: Value Proposition for Auto & Auto Components Sector

India's 1st Japanese Industrial Zone in Neemrana: The Neemrana Japanese Zone hosts 51+ companies, with cumulative investment of approximately ₹6,500 crore and employment exceeding 26,000.
RIICO has developed 440+ industrial areas across Rajasthan, including major automotive clusters in Bhiwadi, Neemrana, Tapukara, Pathredi, Chopankhi, Karoli and Ghiloth.
Five DMIC-linked investment areas are identified for EV and component manufacturing: Khushkheda-Bhiwadi-Neemrana, Jodhpur-Pali-Marwar, Ajmer-Kishangarh, Rajsamand-Bhilwara and Jaipur-Dausa.
Honda car India Limited (HCIL) Tapukara plant has annual production capacity of approximately 180,000 vehicles.
Recent investments: Honda Cars (HCIL) proposed EV manufacturing investment of ₹1,200 crore, PMI Electro Mobility’s ₹1,200 crore EV-bus project at Ghiloth, and Nidec’s ₹450 crore third plant at Neemrana.
Research and Development centre established by Hero MotoCorp in Jaipur

Rajasthan has 73 engineering colleges (19 government and 54 private) with an annual intake capacity of approximately 27,753 students. In FY 2025-26, around 16,355 students were enrolled in engineering programs.
The State hosts premier institutions including IIT Jodhpur, IIM Udaipur, IIIT Kota, MNIT Jaipur, AIIMS Jodhpur and BITS Pilani, providing a strong pipeline of engineering, management and R&D talent.
Rajasthan has a large network of 1,600 Industrial Training Institutes (ITIs) and polytechnics supporting industry-ready manpower for manufacturing, automotive, electronics and engineering sectors.

Policies & Incentives

Rajasthan Investment Promotion Scheme (RIPS) 2024

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As a designated Thrust Sector, the projects under Auto & EV Sector would be eligible for an exceptional suite of incentives designed to optimize both capital expenditure and long-term operations.

Asset Creation Incentives (ACI)

Investment Subsidy (SGST Reimbursement) -75% of the State tax due and deposited for a period of 7 years OR
Capital Subsidy -13-28% of EFCI* to be disbursed in annual instalments over 10 years OR
Turnover Linked Incentive -1.20% - 2.0% of Net Sales Turnover to be disbursed annually for 10 years

Special Incentives

Employment Booster : Ranging from 10% to 15% on ACI Amount, depending upon the employment slab.
Training & Skilling Incentive - Skilling support in form of a Training Subsidy of Rs. 4000 per worker per month for 6 months for training delivered in Rajasthan.

Exemptions and Waivers

100% exemption on Electricity Duty for 7 years.
75% exemption on Stamp Duty And 25% Reimbursement on Stamp Duty
75% exemption on conversion charges payable for change of land use and reimbursement of 25% conversion charges

Special "Boosters" for EV Manufacturers (Anyone of the three)

Thrust Sector Booster: additional 10% bonus over the chosen ACI.
Anchor Booster: For first three "Anchor" units in a specific region (regional anchor booster) or sector (sectoral anchor booster) - 20% additional
Interest Subvention: 5% Interest subvention on term loan for 5 years on loan taken for plant & machinery or equipment

Green Incentives

50% reimbursement of the cost of ETP and Zero Liquid Discharge systems.
Benefits for setting up captive solar/wind plants to power the manufacturing unit, including banking and transmission charge exemptions.

Customized incentive package for units

Silver, Gold and Platinum category customized packages as per eligibility

Mother-Ancillary Ecosystem Incentivess

An investor coming as a group/cluster investor with its ancillary industries within the same or nearby premises (within 50 km radius) such that the ancillaries supply >50% of their total production to the mother unit annually, shall be eligible for this incentive.
Basis the total size of investment, both the principal & ancillary industries will be eligible for the respective standard package subsidy. Only applicable for investments more than 500 cr.

Rajasthan Electric Vehicle Policy (REVP) 2022

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Ease of Doing Business

RajNivesh portal provides a single point, online interface and a time-bound clearance mechanism by acting as a one-stop information / registration / approval / tracking centre for clearances / approvals.
The platform integrates 190+ services across 18 departments, emphasizing the State's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development.

MSME units submit a ‘Declaration of Intent’ electronically on online portal web portal
Acknowledgment Certificate issued electronically to applicant
For 5 years from the date of the Acknowledgement Certificate, eligible enterprises can be exempted from certain government approvals and inspections.
This applies where the State Government or concerned authority already has the power to grant such exemptions under a Central Act.
The exemption is subject to the conditions and provisions of the applicable Central Act.
After 5 years, Enterprises must obtain required approvals within 6 months from the date of expiry of acknowledgement Certificate.