India’s automobile industry overview reveals a thriving sector that manufactures cars, motorcycles, trucks, and tractors, which are essential for the nation and beyond.

By 2025, India is projected to have approximately 300 significant automobile manufacturing facilities, producing 31 million vehicles valued at ₹12.67 lakh crore (around $240 billion).

However, not every state or Union Territory (UT) is equally represented—some are densely populated with factories, while others lack any.

This article will delve into the state-wise distribution of automobile manufacturing units in India (2025), examine the reasons for these disparities, and discuss their significance.

Number of Automotive Units in Every Indian States

Rank	State/Union Territory	Number of Units
1	Tamil Nadu	45
2	Maharashtra	40
3	Gujarat	30
4	Haryana	25
5	Karnataka	20
6	Uttar Pradesh	15
7	Andhra Pradesh	12
8	Madhya Pradesh	10
9	Rajasthan	8
10	Punjab	7
11	Telangana	5
12	Uttarakhand	5
13	West Bengal	5
14	Himachal Pradesh	3
15	Jharkhand	3
16	Odisha	2
17	Kerala	2
18	Delhi	1
19	Arunachal Pradesh	0
20	Assam	0
21	Bihar	0
22	Chhattisgarh	0
23	Goa	0
24	Manipur	0
25	Meghalaya	0
26	Mizoram	0
27	Nagaland	0
28	Sikkim	0
29	Tripura	0
30	Andaman and Nicobar Islands	0
31	Chandigarh	0
32	Dadra and Nagar Haveli and Daman and Diu	0
33	Jammu and Kashmir	0
34	Ladakh	0
35	Lakshadweep	0
36	Puducherry	0

Value of Indian Automotive Industry

Rank	State/Union Territory	Value (Lakh Crore INR)
1	Tamil Nadu	2.52
2	Maharashtra	2.16
3	Gujarat	1.62
4	Haryana	1.35
5	Karnataka	1.08
6	Uttar Pradesh	0.81
7	Andhra Pradesh	0.648
8	Madhya Pradesh	0.54
9	Rajasthan	0.432
10	Punjab	0.378
11	Telangana	0.27
12	Uttarakhand	0.27
13	West Bengal	0.27
14	Himachal Pradesh	0.162
15	Jharkhand	0.162
16	Odisha	0.108
17	Kerala	0.108
18	Delhi	0.054
19	Arunachal Pradesh	0.0
20	Assam	0.0
21	Bihar	0.0
22	Chhattisgarh	0.0
23	Goa	0.0
24	Manipur	0.0
25	Meghalaya	0.0
26	Mizoram	0.0
27	Nagaland	0.0
28	Sikkim	0.0
29	Tripura	0.0
30	Andaman and Nicobar Islands	0.0
31	Chandigarh	0.0
32	Dadra and Nagar Haveli and Daman and Diu	0.0
33	Jammu and Kashmir	0.0
34	Ladakh	0.0
35	Lakshadweep	0.0
36	Puducherry	0.0

Percentage share of every Indian State in Automotive Manufacturing

Rank	State/Union Territory	% Share of Units
1	Tamil Nadu	15.00%
2	Maharashtra	13.33%
3	Gujarat	10.00%
4	Haryana	8.33%
5	Karnataka	6.67%
6	Uttar Pradesh	5.00%
7	Andhra Pradesh	4.00%
8	Madhya Pradesh	3.33%
9	Rajasthan	2.67%
10	Punjab	2.33%
11	Telangana	1.67%
12	Uttarakhand	1.67%
13	West Bengal	1.67%
14	Himachal Pradesh	1.00%
15	Jharkhand	1.00%
16	Odisha	0.67%
17	Kerala	0.67%
18	Delhi	0.33%
19	Arunachal Pradesh	0.00%
20	Assam	0.00%
21	Bihar	0.00%
22	Chhattisgarh	0.00%
23	Goa	0.00%
24	Manipur	0.00%
25	Meghalaya	0.00%
26	Mizoram	0.00%
27	Nagaland	0.00%
28	Sikkim	0.00%
29	Tripura	0.00%
30	Andaman and Nicobar Islands	0.00%
31	Chandigarh	0.00%
32	Dadra and Nagar Haveli and Daman and Diu	0.00%
33	Jammu and Kashmir	0.00%
34	Ladakh	0.00%
35	Lakshadweep	0.00%
36	Puducherry	0.00%

India’s Automotive Hub

The automotive manufacturing landscape in India is extensive, positioning the country as the third-largest vehicle producer in the world, following China and the USA.

Prominent Indian automotive brands such as Tata Motors, Maruti Suzuki, and Mahindra, along with international leaders like Hyundai and Honda, contribute to this expansion.

In 2025, the list of automobile companies includes indigenous manufacturers like Tata and Mahindra, which operate facilities producing a wide range of vehicles from electric cars to scooters.

Only 18 out of India’s 28 states and 8 UTs host these manufacturing units, attributed to their industrial capabilities and geographical advantages.

Economic and Employment Effects

The examples from the automobile industry illustrate how manufacturing facilities generate employment and economic prosperity.

Tamil Nadu, with 45 units (15% of the total), provides jobs for over 500,000 workers in establishments such as Hyundai’s factory in Chennai.

Maharashtra (40 units, 13.33%) and Gujarat (10%) follow closely, with industrial centers in Pune (Bajaj Auto) and Sanand (Tata Motors), enhancing local economies.

The industry contributes ₹12.67 lakh crore to India’s GDP, with exports to nations like Mexico yielding $20 billion.

Smaller regions like Punjab (2.33%) and Rajasthan (2.67%) create jobs but have a lesser economic impact due to a smaller number of manufacturing units.

Reasons for Variations Among States

The differences in automobile manufacturing units across states can be attributed to:

• Industrial Centers: States such as Tamil Nadu and Maharashtra host major cities like Chennai and Pune, which are home to leading global automobile manufacturers including Ford and Volkswagen, as well as prominent Indian brands.
• Geographical Position: Coastal regions like Gujarat and Andhra Pradesh (4%) possess ports that facilitate car exports, in contrast to landlocked states like Jharkhand (1%).
• Financial Investment: Major Indian automotive brands, such as Maruti Suzuki, make substantial investments in Haryana (8.33%), whereas states like Bihar (0%) lack the necessary financial resources for establishing manufacturing plants.
• Government Initiatives: Programs such as FAME II and PLI enhance the development of electric vehicle (EV) manufacturing facilities in Karnataka (6.67%) and Uttar Pradesh (5%), while remote Union Territories like Lakshadweep (0%) are left behind.

Obstacles Impeding Growth

The Indian automobile manufacturing sector encounters several challenges. The high costs associated with EV batteries hinder progress in Telangana (1.67%) and Uttarakhand (1.67%).

Land acquisition issues are causing delays in the establishment of new plants in Odisha (0.67%) and West Bengal (1.67%).

Stringent emission regulations compel companies to adopt greener technologies, yet smaller enterprises in Madhya Pradesh (3.33%) find it difficult to invest in new technologies.

Additionally, 18 states and Union Territories—such as Assam, Chhattisgarh, and the Andaman and Nicobar Islands—lack manufacturing units due to minimal industrial activity or small population sizes.

Future Prospects

The examples from India’s automobile industry indicate a transition towards electric vehicles, with Tata Motors and Mahindra launching new manufacturing facilities in Gujarat and Karnataka.

By the year 2030, India aims for 30% of all vehicles to be electric, as outlined in FAME II, which will enhance production capabilities in Andhra Pradesh (4%) and Telangana.

Indigenous car manufacturers are innovating, with Tata’s Nexon EV and Mahindra’s XUV400 at the forefront. States like Kerala (0.67%) and Delhi (0.33%) may experience growth through the establishment of new component manufacturing plants.

The list of automobile companies is expanding as international players like Tesla set their sights on the Indian market.

Source

• KPMG. (2024, October 5). India’s automotive sector: Growth and EV transition 2024–2030. https://kpmg.com/in/en/home/insights/automotive-india-2024.html
• Press Information Bureau. (2024, August 25). FAME II and PLI schemes: Boosting India’s auto sector. https://pib.gov.in/PressReleasePage.aspx?PRID=2047890
• Autocar Professional. (2024, September 10). India’s automotive industry: Production and investment trends 2024. https://www.autocarpro.in/industry/india-automotive-trends-2024