New Delhi: The Indian automobile industry aims to be among the top two producers globally in each segment of vehicles in the next 25 years. Siam President kenichi ayukawa said on Thursday. Addressing the 62nd Annual Session of Society of Indian Automobile Manufacturers (Siam), ayukawa Said that India also plans to become almost 100 percent self-reliant 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, Ayukawa said.
“This means a significant portion of all viable technologies, including battery electric, ethanol, flex fuel, CNG, bio-CNG, hybrid electric and hydrogen,” he said.
Ayukawa said that achieving such ambitious goals would require the industry to have some key innovators such as a 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.
Ayukawa said the industry will also have to focus on developing enabling technologies and new energy infrastructure.
“Similarly, we have to increase traction on other frontiers 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,” he said. Told. ,
Elaborating on the current market scenario, 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 in the decade 1990s to 2000s, there was a growth in the passenger vehicle segment. CAGR (compound annual growth rate) 12.6 percent.
“It decreased to 10.3 percent in the next decade from 2000 to 2010 and to only 3.6 percent in the decade from 2010 to 2020. If we look at the five-year period, the decline is very sharp. Similar sharp declines in other segments also seen,” Ayukawa said.
He added that the pandemic as well as several other challenges on both the demand and supply sides further affected the growth of the industry.
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.
Ayukawa said, “Massives such as entry-level cars and two-wheelers are facing a sharp drop in demand due to a significant increase in acquisition costs. Other segments that are seeing good demand are mainly due to shortage of semiconductors. The reason is supply side challenges.”
Overall, because of these challenges, all segments, whether passenger vehicle, two wheelerThree wheelers, or commercial vehicles, are still below the industry’s 2018-19 peak, he said.
Ayukawa said the Indian auto industry is a major driver of economic growth in the country, with a turnover of around USD 120 billion and contributing about 6 per cent to the country’s GDP and 35 per cent of India’s manufacturing output.
He said that the domestic automobile industry generates employment for more than 3 crore people and contributes about Rs 1.5 lakh crore to the GST.
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.”
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.
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, Ayukawa said.
“This means a significant portion of all viable technologies, including battery electric, ethanol, flex fuel, CNG, bio-CNG, hybrid electric and hydrogen,” he said.
Ayukawa said that achieving such ambitious goals would require the industry to have some key innovators such as a 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.
Ayukawa said the industry will also have to focus on developing enabling technologies and new energy infrastructure.
“Similarly, we have to increase traction on other frontiers 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,” he said. Told. ,
Elaborating on the current market scenario, 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 in the decade 1990s to 2000s, there was a growth in the passenger vehicle segment. CAGR (compound annual growth rate) 12.6 percent.
“It decreased to 10.3 percent in the next decade from 2000 to 2010 and to only 3.6 percent in the decade from 2010 to 2020. If we look at the five-year period, the decline is very sharp. Similar sharp declines in other segments also seen,” Ayukawa said.
He added that the pandemic as well as several other challenges on both the demand and supply sides further affected the growth of the industry.
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.
Ayukawa said, “Massives such as entry-level cars and two-wheelers are facing a sharp drop in demand due to a significant increase in acquisition costs. Other segments that are seeing good demand are mainly due to shortage of semiconductors. The reason is supply side challenges.”
Overall, because of these challenges, all segments, whether passenger vehicle, two wheelerThree wheelers, or commercial vehicles, are still below the industry’s 2018-19 peak, he said.
Ayukawa said the Indian auto industry is a major driver of economic growth in the country, with a turnover of around USD 120 billion and contributing about 6 per cent to the country’s GDP and 35 per cent of India’s manufacturing output.
He said that the domestic automobile industry generates employment for more than 3 crore people and contributes about Rs 1.5 lakh crore to the GST.
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.”
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.