The Indian auto sector which recently surpassed Germany to become the fourth largest auto industry in the world is evolving to the global standards. Aiming to achieve export surplus by reducing the industry's dependency on imports and export more, Nitin Gadkari, Minister of Road, Transport and Highways (MoRTH), Govt. of India urged Indian automakers to come up with alternative solutions to increase exports and reduce imports. The Minister also targets '100 per cent self-reliance' for the auto industry which can only happen when import is minimal, if not zero.
Also Read: India Seeing Huge Growth In Electric Vehicle Sales Across Segments: Nitin Gadkari
Recent developments like Suzuki Motor Corporation's upcoming lithium battery plant in Gujarat and Vedanta along with Foxconn setting up a 1,000-acre semiconductor plant in the same state are also steps in this direction as it localises development of new technologies and manufacturing of advanced automotive products (AAT). 'Indianisation' or localisation of these new components is likely to bring in more ancillary component makers and other sectors like the software and electronics industry among others. New players joining the fray with more investment will expand the market and accelerate growth, making the sector self-reliant and less dependent.
Also Read: Discount On New Car After Scrapping Old One Cannot Be Made Mandatory: Nitin Gadkari
Vedanta along with Foxconn is setting up a 1,000-acre semiconductor plant in Gujarat.
Also Read: Need More Scrappage Centres, Can Reduce Component Costs; Nitin Gadkari
Estimated to become the third largest in the world by 2030, the industry is currently valued at $ 222 Billion and contributes 8 per cent to the country's total export and in-turn accounts for 7.1 per cent of India's GDP. Upcoming programs like Bharat New Car Assessment Program (NCAP) and CAFE norms (efficiency standards) along with stringent emission standards are ensuring quality upliftment of products which will also increase their acceptance in the global market, in-turn giving exports a shot in the arm.
Also Read: Government Says Global Auto Brands Are Looking For The Right Partner To Enter India
Upcoming programs like Bharat NCAP will increase the acceptance of Indian products in the global markets - Gadkari.
Also Read: India To Dominate Green Energy Vehicle Market Share In The Global Market: Kenichi Ayukawa
Gadkari also mentioned about coming up with 27 green expressways which will smoothen and expedite movement of stock across the country, in-turn increasing manufacturing and operational efficiency. Travel time between Delhi and Jaipur will be reduced to 2 hours, Delhi to Mumbai will take 12 hours, Chennai to Bangalore will be covered in 2 hours.
