India's automotive industry is rapidly accelerating toward becoming the third largest in the world by 2030, bolstered by strategic government schemes and innovative collaborations. This rapid expansion is not limited to Asia, as some Indian giants are also investing in Mexico.
India’s Ministry of Heavy Industries (MHI) is working to strengthen this rapidly growing sector. The ministry organized a conference to review the Production Linked Incentive - Auto Scheme (PLI-Auto), which aims to foster dialogue with stakeholders to further understand the opportunities presented by this industry.
The PLI-Auto scheme, supported by a Rs 25,938 crore (US$3.14 billion) investment, has strengthened the automotive sector's growth by incentivizing local production and technological advances. With the government's commitment to fostering deep localization and developing Advanced Automotive Technology (AAT) products, the industry is poised for exponential expansion.
“India has gained recognition as one of the world's Top 3 rapidly growing innovation economies, attributed to a transformed higher education system, a vast talent pool and the government's supportive stance toward fostering intelligent solutions,” Amit Miglani, President, India-Mexico Business Chamber, tells MBN.
As India’s automotive industry takes off, some companies have turned their sights to Mexico. Indian investment in Mexican companies has increased by 48%, as the country has several characteristics that make it an “alluring destination,” says Miglani: “Essentially, the country offers the necessary infrastructure and support to enable companies to fully leverage its advantages. Finally, Mexico facilitates the reinvestment of earned capital, providing an additional incentive for companies.”
For example, Indian multinational Tata Group will build a mega factory in Nuevo Leon, according to Governor Samuel García. Tata Group’s automotive gigafactory in Nuevo Leon is set to make the state a frontrunner in the global electromobility movement, aligning with the surge in electric vehicle adoption. Tata Group's investment reinforces the region's significance in the international electromobility landscape. Nuevo Leon, will also host Tesla's forthcoming gigafactory, solidifying its position as an electromobility hub.
García also met major Indian corporations, like Infosys and HCLTech, as well as key figures in the automotive industry to foster bilateral trade between both regions.