NEW DELHI: The Indian automotive trade has crossed Rs 20 lakh crore mark in FY24 and now contributes 14-15 per cent of the full GST collected within the nation, SIAM President Vinod Aggarwal mentioned on Monday. The auto sector additionally contributes considerably to the direct and oblique employment technology within the nation, he mentioned whereas talking on the sixty fourth annual ACMA session right here.
“The Indian automotive trade has crossed a landmark determine of Rs 20 lakh crore (round USD 240 million) in FY24…we’re contributing nearly 14-15 per cent of the full GST collected within the nation,” Aggarwal mentioned.
The auto industry will contribute increasingly more to the GDP of the nation from the present degree of round 6.8 per cent, he famous.
It’s not simply the expansion numbers, however equally essential is the transformation within the expertise, he added.
Aggarwal acknowledged that globally additionally the standing Indian auto trade has risen.
“We’ve grow to be the third largest passenger car market, the biggest two and three wheeler market and third largest industrial car market because the nation marches in the direction of Viksit Bharat by 2047,” he famous.
The automotive trade is poised to develop even quicker and contribute immensely to the expansion of the nation, Aggarwal mentioned.
He acknowledged that the auto trade has recognized 50 vital parts for native manufacturing to be able to cut back import dependence.
Aggarwal mentioned SIAM together with ACMA began the journey of enhancing indigenous manufacturing and has voluntarily set targets for growing localisation.
“It was dedicated to cut back import content material by 60 per cent to twenty per cent by 2025 from the bottom 2019-20 ranges, thereby focusing on the lowered studies to the tune of Rs 20,000 to Rs 25,000 crore in 5 years. We’ve very nicely achieved the primary section of import discount of 5.8 per cent in first two years,” Aggarwal mentioned on the ACMA annual session right here.
With the intention to go to the subsequent degree and begin manufacturing of excessive tech vital objects for which the trade has been depending on imports, the trade has now recognized an inventory of fifty vital parts.
“We’re encouraging ACMA members to begin manufacturing them in India to allow the car OEMs to supply these things domestically,” Aggarwal mentioned.
Since most of these things are electrical or electronics, there’s a have to develop capabilities and capacities in India for such excessive tech objects, he added.
Apart from, having experience within the typical inside combustion engine applied sciences comparable to gasoline and diesel, the trade has now developed sturdy capabilities in a number of powertrains comparable to CNG and electrified autos comparable to electrical autos and hybrids, Aggarwal mentioned.
The trade can also be creating hydrogen and gasoline cell primarily based applied sciences, he added.
” Going ahead, because the aspirations of the nation develop we’ve to focus increasingly more aggressively on cleaner and safer autos,” Aggarwal mentioned.
“We’re additionally grateful to the Ministry of Heavy Industries for figuring out the necessity to develop the third automotive mission plan from 2024 to 2047 which can lay down the broad controls of how the trade is anticipated to develop over these years in three distinct phases, from now to 2030 from 2030 to 2037 and at last, 2037 to 2047,” he mentioned.
The automated mission plan will grow to be a guiding doc, not just for the whole car and the auto part trade for committing and planning the investments within the nation, however will even function a prepared reckoner for all the road ministries of the federal government of India, and likewise to many state governments for framing appropriate coverage measures that have to align with the expansion and analysis for the auto sector, he famous.
“We sit up for the ultimate doc on the automotive mission plan,” Aggarwal mentioned.
Talking on the session, Automotive Part Producers Affiliation (ACMA) President Shradha Suri Marwah mentioned the trade is trying ahead to the third model of the automotive mission plan.
She famous that the trade faces varied challenges notably in addressing the ability hole and sustaining worldwide high quality requirements.
“Subsequently, collaboration with instructional establishments and funding in ability improvement is important. Apart from, trade collaboration is equally important,” Marwah mentioned.
She additionally famous that the rising demand for digital parts and semiconductor chips underscores the necessity for strategic alliances.
“The Indian automotive trade has crossed a landmark determine of Rs 20 lakh crore (round USD 240 million) in FY24…we’re contributing nearly 14-15 per cent of the full GST collected within the nation,” Aggarwal mentioned.
The auto industry will contribute increasingly more to the GDP of the nation from the present degree of round 6.8 per cent, he famous.
It’s not simply the expansion numbers, however equally essential is the transformation within the expertise, he added.
Aggarwal acknowledged that globally additionally the standing Indian auto trade has risen.
“We’ve grow to be the third largest passenger car market, the biggest two and three wheeler market and third largest industrial car market because the nation marches in the direction of Viksit Bharat by 2047,” he famous.
The automotive trade is poised to develop even quicker and contribute immensely to the expansion of the nation, Aggarwal mentioned.
He acknowledged that the auto trade has recognized 50 vital parts for native manufacturing to be able to cut back import dependence.
Aggarwal mentioned SIAM together with ACMA began the journey of enhancing indigenous manufacturing and has voluntarily set targets for growing localisation.
“It was dedicated to cut back import content material by 60 per cent to twenty per cent by 2025 from the bottom 2019-20 ranges, thereby focusing on the lowered studies to the tune of Rs 20,000 to Rs 25,000 crore in 5 years. We’ve very nicely achieved the primary section of import discount of 5.8 per cent in first two years,” Aggarwal mentioned on the ACMA annual session right here.
With the intention to go to the subsequent degree and begin manufacturing of excessive tech vital objects for which the trade has been depending on imports, the trade has now recognized an inventory of fifty vital parts.
“We’re encouraging ACMA members to begin manufacturing them in India to allow the car OEMs to supply these things domestically,” Aggarwal mentioned.
Since most of these things are electrical or electronics, there’s a have to develop capabilities and capacities in India for such excessive tech objects, he added.
Apart from, having experience within the typical inside combustion engine applied sciences comparable to gasoline and diesel, the trade has now developed sturdy capabilities in a number of powertrains comparable to CNG and electrified autos comparable to electrical autos and hybrids, Aggarwal mentioned.
The trade can also be creating hydrogen and gasoline cell primarily based applied sciences, he added.
” Going ahead, because the aspirations of the nation develop we’ve to focus increasingly more aggressively on cleaner and safer autos,” Aggarwal mentioned.
“We’re additionally grateful to the Ministry of Heavy Industries for figuring out the necessity to develop the third automotive mission plan from 2024 to 2047 which can lay down the broad controls of how the trade is anticipated to develop over these years in three distinct phases, from now to 2030 from 2030 to 2037 and at last, 2037 to 2047,” he mentioned.
The automated mission plan will grow to be a guiding doc, not just for the whole car and the auto part trade for committing and planning the investments within the nation, however will even function a prepared reckoner for all the road ministries of the federal government of India, and likewise to many state governments for framing appropriate coverage measures that have to align with the expansion and analysis for the auto sector, he famous.
“We sit up for the ultimate doc on the automotive mission plan,” Aggarwal mentioned.
Talking on the session, Automotive Part Producers Affiliation (ACMA) President Shradha Suri Marwah mentioned the trade is trying ahead to the third model of the automotive mission plan.
She famous that the trade faces varied challenges notably in addressing the ability hole and sustaining worldwide high quality requirements.
“Subsequently, collaboration with instructional establishments and funding in ability improvement is important. Apart from, trade collaboration is equally important,” Marwah mentioned.
She additionally famous that the rising demand for digital parts and semiconductor chips underscores the necessity for strategic alliances.
