India's Automotive Mission Plan 2026 unveiled at SIAM Convention

Giving a firm push to the government’s Make in India plan, the automotive industry and the government today jointly unveiled the new Automotive Mission Plan 2026.

AMP 2026 envisions that by 2026 the Indian auto industry will be among the top three in the world in terms of  engineering, manufacturing and export of vehicles as well as auto components and will encompass safe, efficient and environment friendly conditions for affordable mobility of people and transportation of goods in India.

This will be in line with global standards growing in value to over 12 percent of India’s GDP and generating an additional 65 million jobs.

AMP 2026 is targeting a growth 3.5 to 4 times in value from its current output of around Rs 464,000crore n year before the end of the current Mission Plan period 2016 to about Rs 16,16,000 –Rs 18,88,500 crore by 2026. This will be based on a growth of 5.8 percent with an average GDP growth of7.5 percent during this period.

Meanwhile, AMP 2006-16 has achieved about 70 percent of its targets an year before its closure. Someof its key achievements are an incremental employment creation of 25 million jobs over the last 10years. India has attracted a significant quantum of investments from global and local OEMs as well ascomponent manufacturers exceeding the target of Rs 1,57,500 crore.

While the cumulative domestic sales volume targets of commercial vehicles, passenger vehicles andtractors have been achieved components, two-wheelers and three-wheelers have fallen short of their vision.  In comparison to the base case scenario of Rs 5,49,000 crore, the industry is on course to achieve this roadmap by end-FY’16. In terms of exports, by end FY’16 automobiles will have overshot the targetof Rs 54,000 crore while the auto component sector would witness a major shortfall from the Rs120,000 crore vision.

Also read: SIAM Convention sees industry and policy makers debate way ahead for India auto