SIAM says: Kenichi Ayukawa, President of the Society of Indian Automobile Manufacturers, has informed that in the next 25 years the Indian automobile industry aims to be among the top two producers globally in all areas of vehicles. Speaking at the 62nd Annual Session of SIAM, Ayukawa said that under Vision 2047, India plans to become almost 100% self-reliant across all manufacturing value chains of the automobile sector in the next 25 years.
What is the plan of Indian Automobile Industry?
Ayukawa said, “The auto industry has made a vision statement for India on 100 years of independence. Accordingly, the Indian automobile industry will be one of the two top producers in every segment of the industry across the globe.” Also, the industry aims to manufacture clean energy vehicles on a life cycle basis as a major part in the next 25 years. This means that all viable technologies including battery electric, ethanol, flex fuel, CNG, bio-CNG, hybrid electric, and hydrogen are part of the scheme. an important part of.
What steps are to be taken
According to Ayukawa, to achieve these ambitious goals, the industry will need some major changes such as pushing for competitiveness as the sole goal and developing the ability to ease doing business. A long-term regulatory roadmap for the development of investments, technologies, and products can be helpful in planning this. According to Ayukawa, the industry will have to focus on developing efficient technologies and new energy infrastructure. At the same time, we have to work fast on points like security, telematics, infotainment, and customer facilities.
What is the Current Status
On the current market, Ayukawa said that the domestic automobile industry is going through a long slowdown even before the pandemic started. Giving examples, he said that the passenger vehicle segment grew at a CAGR of 12.6% (compound annual growth rate) from the 1990s to the 2000s. Which decreased to 10.3% in the next decade from 2000 to 2010 and only 3.6% in the decade from 2010 to 2020. There has been a sharp decline in the last five years.
What are the causes of recession?
Ayukawa said the pandemic, as well as several other challenges on both the demand and supply sides, collectively affected the growth of the auto industry. The industry is currently going through a phase in which some sectors are improving post-pandemic and some are still struggling to recover from the slowdown. According to him, the entry-level cars and two-wheeler segments are witnessing a slowdown in their demand after cost overruns and the segments which are witnessing a boom are not able to meet the demand due to a shortage of semiconductors.
Where is India now?
Ayukawa said that all segments of the auto industry are still below the figures for the year 2018-19. He said that the Indian auto industry is a major source of economic growth in the country, with a turnover of around USD 120 billion, which accounts for about 6 percent of the country’s GDP and contributes 35 percent to India’s manufacturing output. This industry generates employment for more than 3 crore people in the country and contributes around Rs 1.5 lakh crore to GST. He said that India is the second largest producer of two-wheelers in the world in this segment, the fourth largest in passenger vehicles, and the seventh largest in commercial vehicles.
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