Kenichi Ayukawa said that India plans to be almost 100% self-sufficient in the entire manufacturing value chain of automobiles during this period as per Vision 2047.
Kenichi Ayukawa said that India plans to be almost 100% self-sufficient in the entire manufacturing value chain of automobiles during this period as per Vision 2047.
Society of Indian Automobile Manufacturers (SIAM) President Kenichi Ayukawa said on September 15 that the Indian automobile industry aims to be among the top two producers globally in every segment of vehicles over the next 25 years.
Speaking at the 62nd Annual Session of SIAM, Mr. Ayukawa said that India also plans to become almost 100% self-sufficient in the entire manufacturing value chain of automobiles during this period as per Vision 2047.
He said, “The industry has prepared a vision statement for India at 100. Accordingly, the Indian automobile industry will be one of the two largest producers in every segment of automobiles in the world.”
“In addition, the industry aims to have a major share of clean energy vehicles on a life-cycle basis over the next 25 years,” said Mr. Ayukawa.
“This means a significant portion of all viable technologies, including battery electric, ethanol, flex fuel, CNG, bio-CNG, hybrid electric and hydrogen.”
Mr. Ayukawa said that achieving such ambitious goals would require the industry to have some key innovators such as the single-minded pursuit of competitiveness. “Second is ease of doing business. A long-term regulatory roadmap can be helpful in better planning for investments, technologies and product development,” he said.
“The industry will also have to focus on developing enabling technologies and new energy infrastructure,” said Mr. Ayukawa.
“Similarly, we have to increase traction on other fronts like security, telematics, infotainment, customer convenience features etc… The industry also has to ensure right skilling and re-skilling to make our manpower future ready.” where did it go.
Elaborating on the current market scenario, Mr. Ayukawa said that the domestic automobile industry is going through a long-term, deep structural slowdown even before the pandemic began.
Giving examples, he said that the passenger vehicle segment grew at a CAGR of 12.6% (compound annual growth rate) in the 1990s to 2000s.
“It declined to 10.3% in the next decade from 2000 to 2010, and to just 3.6% in the decade from 2010 to 2020. If we look at the five-year period, the decline is much faster. Similar sharp declines It is seen in other sections as well,” Mr. Ayukawa said.
“Many other challenges on both demand and supply that came with the pandemic further impacted the growth of the industry,” he said.
He said that the industry is currently passing through a unique phase, with some segments recovering after the pandemic, while others are still struggling to cope.
“Massives such as entry-level cars and two-wheelers are facing a sharp drop in demand due to a significant increase in acquisition cost. Other segments that are seeing good demand, mainly due to shortage of semiconductors, are facing supply side challenges. Huh.” Ayukawa said.
“Overall, due to these challenges, all segments, be it passenger vehicles, two wheelers, three wheelers or commercial vehicles, are still below the industry peak of 2018-19,” he added.
Mr Ayukawa said that the Indian auto industry is a major driver of economic growth in the country with a turnover of around $120 billion and contributes about 6% to the country’s GDP and 35% of India’s manufacturing output.
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“The domestic automobile industry generates employment for over three crore people and contributes about Rs 1.5 lakh crore to the GST,” he said.
Mr. Ayukawa said that the sector has achieved massive achievement both in the domestic market and also in exports.
He said, “We are the second largest in the world in the two-wheeler category and the seventh largest among commercial vehicles. In 2021, India’s passenger vehicle segment has overtaken Germany to become the fourth largest globally.”
Mr. Ayukawa also lauded the government for its significant interventions such as the PLI scheme for the auto and auto component industry, for advanced chemicals cells, and a special scheme for electronic components.
He lauded the government for the progress on the expansion of the FAME-2 scheme, vehicle scrappage policy and corporate tax benefits for new companies and FTAs with developed countries.