The development of automobiles in India dates back to the early twentieth century, when the first car arrived in the nation. Since then, the Indian car industry has come a long way, from manufacturing only a few thousand units per year to exceeding 26 million in 2017-18.

Initially, India's automobile industry was highly reliant on imports, but the Indian government's drive for self-sufficiency and the implementation of policies such as the "License Raj" in the 1950s and 1960s severely hampered the industry's growth. However, the 1990s economic liberalisation and following removal of restrictive policies opened up the industry to foreign investment and technology, resulting in a boom in automobile production.

The Indian automobile business includes both domestic players like Tata Motors and Mahindra & Mahindra and foreign behemoths like Ford, Toyota, and Volkswagen. The industry is divided into four segments: two-wheelers, three-wheelers, passenger vehicles, and commercial vehicles, all of which have experienced substantial growth in recent years.

The Indian automobile market's biggest segment, two-wheelers, is dominated by domestic manufacturers like Hero MotoCorp, Bajaj Auto, and TVS Motors. However, with their high-performance bikes, foreign competitors like Honda and Yamaha have also had a sizable effect on this market.Due to the increase in demand for last-mile connectivity in urban areas, the three-wheeler market, which includes vehicles like rickshaws and auto-rickshaws, has also experienced impressive development in recent years. Piaggio and Bajaj Auto are two of the industry's top competitors.

The third-largest segment of the Indian automobile industry is the passenger vehicle segment, which includes cars, SUVs, and vans. India's market for passenger cars is regarded as being extremely competitive, with both local and foreign players vying for market share. In this market, Maruti Suzuki, a division of the Japanese automaker Suzuki in India, leads Hyundai, Mahindra & Mahindra, and Tata Motors.
The fourth-largest market for automobiles in India is the commercial vehicle sector, which includes trucks, buses, and construction vehicles. Companies like Tata Motors, Mahindra & Mahindra, and Ashok Leyland dominate this market, with international competitors like Volvo and Scania also making their impact.

The technology, design, and innovation in the Indian automobile business have advanced significantly over time. Modern methods and high-tech materials have enabled the creation of lighter, more fuel-efficient cars with improved speed and safety features.

By introducing policies and programmes that offer incentives for R&D, innovation, and the production of electric cars, the Indian government has also significantly contributed to the expansion of the automotive industry. The Indian automobile industry is anticipated to undergo a revolution thanks to the National Electric Mobility Mission Plan (NEMMP), which was introduced in 2013 and aims to sell 100% electric vehicles by 2030.