passenger vehicle manufacturers in india are gearing up to invest up to rs 65000 crore in the automotive sector by fy25 according to rating agency icra the influx of capital will take place in order to ramp up production capacity and cater to the robust demand that the sector has been witnessing moreover the dreaded semiconductor shortage has been easing up in the past few quarters further improving outputas per the pti report the passenger vehicle industrys wholesale volumes are expected to touch an all time high of 37 to 38 million units in fy23 marking a growth of 21 to 24 percent over fy22 factoring in a favourable continuation of strong demand in light of supply chain constraints easing up automakers are now ramping up their capacity expansion plansaccording to icra multiple oems have already announced an aggregate outlay in excess of rs 25000 crore towards capacity expansion in the coming financial years with oems also budgeting for a substantial outlay toward new product development including the development of capabilitiesdedicated platforms for evs the aggregate capex outlay for oems is estimated to remain heightened at rs 65000 crore over fy23 to fy25 the pti report quoted icra