Light vehicle production will top the four million unit mark by the end of 2016.
The forecast comes from the latest report by PwC Autofacts and states that manufacture of cars, utility vehicles and light commercials will reach an all-time record of 4.1m units this year, 5.8m by 2020 and 6.5m two years after that.
A percentage of those vehicles, particularly small utility, will boost the export market which is set to reach 700,000 by the end of 216 according to the report.
Confident consumers, added to strong exports, are pushing car sales, despite a weak start of the year, with utility vehicles leading the way by showing a 25% uplift in sales by the end of June 2016.
According to Abdul Majeed, partner at PwC, "With all the positive indictors to support the growth and improved customers sentiments Indian automotive industry is poised for growth this year...how OEMs make themselves relevant with changing customer preferences is the key for success."
However, the top-line numbers hide a capacity problem for the industry, with some 2.7m units currently unsold and set to rise further next year. The report states pressure will ease by 2022.