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India’s ever-growing automotive industry has recently achieved a big milestone of hitting INR 20 lakh crore mark in the financial year 2024. The data was shared with the public by Vinod Aggarwal, the President of the Society of Indian Automobile Manufacturers (SIAM). He shared this news at the 64th annual session of the Automotive Component Manufacturers Association of India (ACMA). In addition to crossing the INR 20 lakh crore mark, the industry is also contributing around 15% of India’s total GST collection, said Vinod Aggarwal.
Aggarwal also focused on the fact that India’s automotive industry is playing an important role in contributing to GDP as well as employment. He also said that the industry is providing direct as well as indirect employment in the country. He was also of the view that the industry is set to increase its contribution to India’s GDP beyond the current 6.8%.
Aggarwal proudly shared that India now holds the largest market for two- and three-wheelers, as well as the third-largest market share for passenger and commercial vehicles in the world. He also outlined the fact the industry is undergoing technological transformation within the industry and it is facilitating it to register better growth figures.
He was convinced that the Indian automotive industry has a lot of potential and will play an important role in releasing the Viksit Bharat by 2047 plan. He informed that the sector has marked about 50 vital components for domestic production. This step has been taken to reduce India’s dependence on imports. In addition to this, Aggarwal informed that the industry is committed to lowering import content from 60% to 20% by 2025, based on 2019-20 levels. This would result in a reduction of imports worth INR 20,000 to INR 25,000 crore over the next five years.Â
SIAM and ACMA’s push for boosting domestic production capabilities
In an important development, SIAM and ACMA’s collaborative efforts for promoting indigenous manufacturing have resulted in the reduction of imports by over 5% in just 2 years. Aggarwal informed that they are encouraging ACMA members to start manufacturing in the country itself. This will facilitate OEMs getting items from the local market to produce new products.
Aggarwal also highlighted the Indian auto industry’s recent strides in adopting CNG, hybrids, and electric vehicles. He also lauded the development of hydrogen and fuel cell-based technologies. He was excited to say that moving forward as India grows, we must focus on cleaner and safer vehicles.
