The Indian automotive industry crossed the Rs 20 lakh crore mark in FY 2023-24 and now contributes 14-15 per cent of the total GST collected in the country.
Society of Indian Automobile Manufacturers (SIAM) President Vinod Agarwal said at the 64th annual ACMA session here that the automobile sector also contributes significantly to direct and indirect employment generation in the country.
Aggarwal said, “The Indian automotive industry will cross the Rs 20 lakh crore mark in FY 2023-24…we are contributing around 14-15 per cent of the total Goods and Services Tax (GST) collected in the country.”
He said the automotive industry will contribute more to the country’s gross domestic product (GDP) than the current level of 6.8 per cent. Aggarwal said not only growth numbers are important but changes in technology are equally important.
The president of the automobile industry body said, “We have become the third largest passenger vehicle market, the largest two-wheeler and three-wheeler market and the third largest commercial vehicle market. That too at a time when the country is moving towards achieving the goal of ‘developed India’ by 2047.”
Aggarwal said that the automotive industry is poised to grow even faster and contribute significantly to the country’s development. The automotive industry has identified 50 critical components for local production with the aim of reducing dependence on imports. Aggarwal said that SIAM, along with ACMA, has embarked on a journey to increase indigenous manufacturing and has voluntarily set targets to increase localization.
“We are committed to reduce import content from 60 per cent to 20 per cent by 2025 from the 2019-20 base level. It has a target of reduction of Rs 20,000 to Rs 25,000 crore in five years. We have very well achieved the first phase of reduction in imports by 5.8 per cent in the first two years,” Agarwal said at the annual session of ACMA here.
Speaking at the session, Automotive Component Manufacturers Association (ACMA) President Shraddha Suri Marwah said the industry was looking forward to the third edition of the Automotive Mission Plan. She said the industry faces various challenges, especially in bridging the skill gap and maintaining international quality standards.
“Therefore, collaboration with academic institutions and investment in skill development is essential. In addition, industry collaboration is equally important,” Marwah said, adding that the growing demand for electronic components and semiconductor chips underlines the need for strategic alliances.
