According to industry insiders, the domestic automotive sector, which is fuelled by electric vehicles (EVs), crossed the Rs 20 lakh crore mark in FY24 and has the potential to be valued $1.6 trillion (about Rs 134 lakh crore) by 2047.
According to Pawan Goenka, Chairman of IN-SPACe at the Department of Space, the nation’s automobile sector is expected to be one of the main growth drivers in reaching a $32-trillion GDP by 2047.
Speaking at the national capital during an event hosted by the Automotive Component Manufacturers Association (ACMA), he stated that by 2047, the automobile sector may contribute $1.6 trillion.
Goenka continued, “The auto industry contributes significantly to the generation of both direct and indirect employment in the country.” She also added that the industry’s current 6.8% GDP contribution would increase over time. About the last 20 years, the industry has expanded at a CAGR of 17%.
Vinod Aggarwal, President of the Society of Indian Automobile Manufacturers (SIAM), stated that in an effort to lessen reliance on imports, the domestic auto sector has identified 50 essential components for local production.
He went on to say that as the majority of these products are electrical or electronic, India has to build the skills and capacity necessary to produce such high-tech products.
In FY24, the Indian automobile industry achieved a significant milestone of Rs 20 lakh crore, according to Aggarwal, who also stated that the sector accounts for roughly 14–15% of the nation’s overall GST collection.
Both SIAM and ACMA have willingly established goals to improve localisation. Industry associations pledge to cut import content from base 2019–20 levels by 60% to 20% by 2025, meaning that lowered reports will total between Rs 20,000 and Rs 25,000 crore in five years.
The nation is now home to the largest two- and three-wheeler markets, the third-largest market for passenger cars, and the largest market for commercial vehicles.
Nitin Gadkari, the Union Minister for Road Transport and Highways, previously stated at the event that within the next two years, the cost of EVs will nearly equal that of petrol and diesel automobiles as the country adopts more of these vehicles.
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