EVs Poised to Propel Indian Automotive Industry to Rs 134 Lakh Crore by 2047
Tuesday, 10 September 2024, 12:12 IST
The Indian automotive industry, which surpassed the Rs 20 lakh crore mark in FY24, is on track to reach an impressive $1.6 trillion (approximately Rs 134 lakh crore) by 2047, driven largely by the growth of electric vehicles (EVs), according to industry experts.
Pawan Goenka, Chairman of IN-SPACe at the Department of Space, highlighted the sector's role in achieving India’s ambitious $32-trillion GDP target by 2047. Speaking at the Automotive Component Manufacturers Association (ACMA) event in New Delhi, Goenka emphasized the automotive industry's potential to significantly contribute to the national economy. Currently accounting for about 6.8 percent of the GDP, the sector has experienced a robust growth rate of 17 percent CAGR over the past two decades.
Vinod Aggarwal, President of the Society of Indian Automobile Manufacturers (SIAM), noted the industry's strategic move towards reducing import dependence by focusing on local production of 50 critical components. These components, largely electrical and electronic, require enhanced domestic capabilities. Aggarwal also reported that the automotive sector now contributes nearly 14-15 percent of the total GST collected in India.
In collaboration with ACMA, SIAM has set ambitious targets for increasing localization within the industry. The goal is to reduce import content from 60 percent to 20 percent by 2025 compared to 2019-20 levels. This effort aims to lower import expenditure by Rs 20,000 to Rs 25,000 crore over the next five years.
India's automotive market has achieved notable milestones, becoming the third-largest passenger vehicle market, the largest two and three-wheeler market, and the third-largest commercial vehicle market globally.
Union Minister for Road Transport and Highways, Nitin Gadkari, shared optimistic projections about the future cost competitiveness of EVs. He indicated that as EV adoption grows, their costs are expected to align closely with those of petrol and diesel vehicles within the next two years.
The industry's rapid evolution and strategic shifts underscore its pivotal role in shaping India’s economic landscape and driving the transition towards a more sustainable automotive future.
Pawan Goenka, Chairman of IN-SPACe at the Department of Space, highlighted the sector's role in achieving India’s ambitious $32-trillion GDP target by 2047. Speaking at the Automotive Component Manufacturers Association (ACMA) event in New Delhi, Goenka emphasized the automotive industry's potential to significantly contribute to the national economy. Currently accounting for about 6.8 percent of the GDP, the sector has experienced a robust growth rate of 17 percent CAGR over the past two decades.
Vinod Aggarwal, President of the Society of Indian Automobile Manufacturers (SIAM), noted the industry's strategic move towards reducing import dependence by focusing on local production of 50 critical components. These components, largely electrical and electronic, require enhanced domestic capabilities. Aggarwal also reported that the automotive sector now contributes nearly 14-15 percent of the total GST collected in India.
In collaboration with ACMA, SIAM has set ambitious targets for increasing localization within the industry. The goal is to reduce import content from 60 percent to 20 percent by 2025 compared to 2019-20 levels. This effort aims to lower import expenditure by Rs 20,000 to Rs 25,000 crore over the next five years.
India's automotive market has achieved notable milestones, becoming the third-largest passenger vehicle market, the largest two and three-wheeler market, and the third-largest commercial vehicle market globally.
Union Minister for Road Transport and Highways, Nitin Gadkari, shared optimistic projections about the future cost competitiveness of EVs. He indicated that as EV adoption grows, their costs are expected to align closely with those of petrol and diesel vehicles within the next two years.
The industry's rapid evolution and strategic shifts underscore its pivotal role in shaping India’s economic landscape and driving the transition towards a more sustainable automotive future.
