India’s automobile sector is on a continuous growth path. This is the reason why the industry is continuously setting record after record. The industry has created history in the financial year 2023-24. The Indian automobile sector has crossed the Rs 20 lakh crore mark in the last financial year. What is special is that now the industry’s contribution to the total GST collected in the country is 14 to 15 per cent. Society of Indian Automobile Manufacturers (SIAM) President Vinod Aggarwal said at the 64th annual session of ACMA on Monday that the motor vehicle sector also contributes significantly to direct and indirect employment generation in the country.
20 crore industry
Aggarwal said that the Indian automobile industry has crossed the Rs 20 lakh crore mark in the financial year 2023-24… We are contributing around 14-15 per cent of the total GST collected in the country. He said that the automobile industry will contribute more to the country’s gross domestic product (GDP) than the current level of 6.8 per cent. Aggarwal said that not only the growth numbers are important, but the change in technology is also equally important. The Automobile Industry Association president said that we have become the third largest market for passenger vehicles, the largest market for two and three wheelers and the third largest market for commercial vehicles. This also at a time when the country is moving towards achieving the goal of a developed India by 2047.
Continued decline in imports
Aggarwal said the automobile industry is all set to grow even faster and contribute significantly to the development of the country. The automobile industry has identified 50 critical components for local production with an aim to reduce dependence on imports. Aggarwal said SIAM, in collaboration with ACMA, has embarked on a journey to increase indigenous manufacturing and has voluntarily set targets to increase localization. Aggarwal told the annual session of ACMA here that we are committed to reducing import content from 60 per cent to 20 per cent by 2025 from the base level of 2019-20. In this regard, a target of reduction of Rs 20,000 to 25,000 crore in five years has been set. We have successfully achieved the first phase of reducing imports by 5.8 per cent in the first two years.
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Challenges also lie ahead
Speaking at the session, Shraddha Suri Marwah, President, Automotive Component Manufacturers Association (ACMA), said that the industry is looking forward to the third edition of the Motor Vehicle Mission Plan. She said that the industry is facing several challenges, especially in bridging the skill gap and maintaining international quality standards. Marwah said that collaboration with educational institutions and investment in skill development is therefore necessary. Apart from this, industry collaboration is also equally important. She said that the increasing demand for electronic components and semiconductor chips underlines the need for a strategic alliance.
