'Indian auto industry to grow up to Rs 18.89 lakh cr by 2026'

The government and automobile industry today set an ambitious target of increasing the value of output of the sector to up to Rs 18.89 lakh crore and make it among top three globally in the next decade under the Automotive Mission Plan (AMP) 2016-26.
The plan, a collective vision of the government and industry, also aims to propel the Indian auto sector "to be the engine of 'Make in India' programme, potentially contributing in excess of 12 per cent of the country's GDP.
"AMP 2026 envisages that the India automotive industry will grow 3.5-4 times in value from its current output of around Rs 4.64 lakh crore to about Rs 16.16-18.89 lakh crore by 2026," said a curtain raiser on AMP 2016-26, which was released here at the SIAM annual convention.

Highlighting the significance of the sector, it said: "Over the next decade, the Indian automotive sector is likely to contribute in excess of 12 per cent of the country's GDP and comprise more than 40 per cent of its manufacturing sector."
On job creation, it said: "The potential for incremental number of both direct and indirect jobs to be created by the Indian automotive industry over the next decade is nearly 65 million."
This is over and above an additional 25 million jobs created in the previous decade, it added.

In terms of exports, the AMP 2016-26 envisages Rs 2.95 lakh crore from OEMs and Rs 4.62 lakh crore from component shipments.

On emission norms, the plan said there is a need for a scientific and transparent study of the causes of air pollution in Indian cities, suggesting BS V by 2019 for new models and BS VI by 2023 for four-wheelers.
On safety regulations, it said the there is a need for articulating a clear road map over the next decade that will make Indian vehicles comply with global standards.
About AMP 2016-26, SIAM past president and Mahindra and Mahindra Executive Director Pawan Goenka said: "We believe that AMP 2026 has visionary targets. It goes beyond just numbers and focuses on promoting safe, efficient and comfortable mobility for every person in society."

SIAM President Vikram Kirloskar said: "Once we have a road map, its easy to go and use this for all policy purposes for a long time."
In the first AMP 2006-16, the auto industry had achieved a target of incremental job creation of 25 million while the country attracted investments topping the target of Rs 1.55 lakh crore from global and local OEMs as well as component makers.