Indian auto industry expected to see value rise to Rs 18.9 lakh crore by 2026

The government and
automobile industry today set an
ambitious target of increasing the value of
output of the sector to up to Rs 18.89
lakh crore and make it among top three
globally in the next decade under the
Automotive Mission Plan (AMP) 2016-26.
The plan, a collective vision of the
government and industry, also aims to
propel the Indian auto sector “to be the
engine of ‘Make in India’ programme,
potentially contributing in excess of 12
per cent of the country’s GDP.
“AMP 2026 envisages that the India
automotive industry will grow 3.5-4 times
in value from its current output of around
Rs 4.64 lakh crore to about Rs
16.16-18.89 lakh crore by 2026,” said a
curtain raiser on AMP 2016-26, which
was released here at the SIAM annual
convention.
Highlighting the significance of the
sector, it said: “Over the next decade, the
Indian automotive sector is likely to
contribute in excess of 12 per cent of the
country’s GDP and comprise more than 40
per cent of its manufacturing sector.”
On job creation, it said: “The potential for
incremental number of both direct and
indirect jobs to be created by the Indian
automotive industry over the next decade
is nearly 65 million.”
This is over and above an additional 25
million jobs created in the previous
decade, it added.
In terms of exports, the AMP 2016-26
envisages Rs 2.95 lakh crore from OEMs
and Rs 4.62 lakh crore from component
shipments.
On emission norms, the plan said there is
a need for a scientific and transparent
study of the causes of air pollution in
Indian cities, suggesting BS V by 2019 for
new models and BS VI by 2023 for four-
wheelers.
On safety regulations, it said the there is
a need for articulating a clear road map
over the next decade that will make Indian
vehicles comply with global standards.
About AMP 2016-26, SIAM past president
and Mahindra and Mahindra Executive
Director Pawan Goenka said: “We believe
that AMP 2026 has visionary targets. It
goes beyond just numbers and focuses
on promoting safe, efficient and
comfortable mobility for every person in
society.”
SIAM President Vikram Kirloskar said:
“Once we have a road map, its easy to go
and use this for all policy purposes for a
long time.”
In the first AMP 2006-16, the auto
industry had achieved a target of
incremental job creation of 25 million
while the country attracted investments
topping the target of Rs 1.55 lakh crore
from global and local OEMs as well as
component makers.