A report by global strategy and management consulting firm Arthur D Little has said that India can unlock an additional $400+ billion value by transforming into a global automotive hub. The report called Transforming India into a Global Automotive Hub: Roadmap for the Automotive Ecosystem, released today, has also said that India has the scope to become a US$ 1 trillion export led auto industry by 2035.
The report outlines five pillars which must be strengthened to create a leadership position for India in the global automotive industry. These are becoming a destination for global platforms, becoming an automotive software and ER&D powerhouse, becoming the new epicentre for technology, innovation and partnerships, building operational efficiencies at scale throughout the automotive value chain and leapfroging to sustainable materials and circular economy.
It highlights the increasing pace of innovation within the local automotive ecosystem. The global automotive ER&D Nx software market is expected to grow threefold by 2030 to US$ 400bn plus. India can leverage its position as the software hub of the world and offshore destination of choice for ER&D.
To achieve global competitiveness, India must build operational efficiencies at scale throughout the automotive value chain. Players need to invest in sustainable practices such as lightweight materials.
"There is a need to look at partnerships in a different way. Besides lithium, OEMs are securing partnerships as there will be multi environment technologies. It is important to start securing partnerships in other forms of batteries for the automotive sector", said Prathamesh Chaudhri, Principal Automative ADL India.
Barnik Chitran Maitra, Managing Partner, Arthur D Little, India and South Asia said, "India's automotive industry can become a global hub for design development and production, appealing to international markets. Needs to drive operational efficiencies across the value chain and lead a transition to sustainable materials.
Dr Andreas Schlosser, Partner and global automotive leader said that India needs to catch up with international cyber security standards.
Maitra added that " Unlocking the true potential of India's automotive sector requires a robust dialogue and concerted actions among stakeholders. Together the industry can collaborate and drive platforms, paving the way for India to merge as a global automotive hub with a US$ 1 trillion vision for 2035.