New Delhi: According to industry leaders, the domestic automotive industry crossed the Rs 20 lakh crore mark in FY24 and, driven by electric vehicles (EVs), has the potential to be worth $1.6 trillion (about Rs 134 lakh crore) by 2047.
Pawan Goenka, chairman of IN-SPACe at the Department of Space, says India’s automotive industry is poised to be one of the key growth engines for achieving a $32 trillion GDP by 2047.
Addressing the Automotive Component Manufacturers Association (ACMA) event in the national capital, he said the automotive industry could contribute $1.6 trillion by 2047.
The auto sector also significantly contributes to the country’s direct and indirect employment generation; Goenka further said that the auto industry would contribute more and more to the country’s GDP from the current level of around 6.8 percent. Over the last two decades or so, the industry has grown by a 17 percent CAGR.
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The Society of Indian Automobile Manufacturers (SIAM) President Vinod Aggarwal said that the domestic auto industry had identified 50 critical components for local production in order to reduce import dependence.
He added that as most of these items are electrical or electronics, India needs to develop capabilities and capacities for such high-tech items.
Aggarwal told the gathering that the Indian automotive industry crossed the landmark figure of Rs 20 lakh crore in FY24 and is contributing almost 14-15 percent of the total GST collected in the country.
SIAM, along with ACMA, has voluntarily set targets for increasing localisation. The industry bodies are committed to reducing import content by 60 percent to 20 percent by 2025 from the base 2019-20 levels, thereby targeting reduced reports of Rs 20,000 to Rs 25,000 crore in five years.
The country has become the third-largest market for passenger vehicles, two- and three-wheelers, and commercial vehicles.
As the country’s adoption of EVs increases, the cost of EVs will almost match the cost of petrol and diesel vehicles within the next two years, Union Minister for Road Transport and Highways Nitin Gadkari said earlier at the event.
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–IANS
