 "Auto industry seeks dedicated fund to boost R&D")
The automotive industry, during the conference at Make In India Week, has urged the government to create a dedicated fund to boost R&D in the sector. “India plays a very important role in the global auto component industry. There is need to create R&D fund to facilitate start-ups,” said Arvind Balaji, president, Automotive Component Manufacturers Association of India (ACMA) and joint MD, Lucas TVS Ltd.
Industry leaders present at the seminar said there was an urgent need to create an ecosystem that allows for innovation and R&D to proliferate. They expressed confidence that with supportive policy measures and conducive business environment, India will be in the top three in automobile manufacturing by 2026.
Ravindra Pisharody, vice president, Society of Indian Automobile Manufactures (SIAM), and executive director, Tata Motors, said, “There are 30 R&D centres in the field of automotive sector. India is a strategic R&D destination as far as automotive industry concern.”
While most major global auto OEMs are present and manufacture in India, domestic auto component industry has become an attractive supplier base for global markets. India has also emerged as a leading global hub for small cars with around 31 percent of the global small cars sold, being manufactured in India.
The sector’s impact on the Indian economy currently is significant as it contributes about 7 percent to the country’s GDP and is expected to increase to 12 percent as per the Automotive Mission Plan. Auto and auto components sectors together are the highest contributors to industrial and manufacturing GDP with 25 percent and 45 percent, respectively.
According to the Automotive Mission Plan 2016-26 (AMP 2026), the Indian auto industry aims to be in the global top three for engineering, manufacturing and export of vehicles, auto components. The industry is likely to grow from $ 80 billion to $ 270 billion by 2026 and generate an additional 65 million jobs.
“There is need for all stakeholders including Government and Industry to work together towards foreign trades, tariff, investments and long term tariffs regime,” said Dr Rajan Katoch, secretary, department of heavy industry.
Industry leaders present at the seminar said there was an urgent need to create an ecosystem that allows for innovation and R&D to proliferate. They expressed confidence that with supportive policy measures and conducive business environment, India will be in the top three in automobile manufacturing by 2026.
Ravindra Pisharody, vice president, Society of Indian Automobile Manufactures (SIAM), and executive director, Tata Motors, said, “There are 30 R&D centres in the field of automotive sector. India is a strategic R&D destination as far as automotive industry concern.”
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Anant Geete, Minister for Heavy Industries & Public Enterprises, assured the automobile and auto component industry that the government would provide all support in developing India into a globally competitive auto manufacturing nation. “The auto industry also needs to channelise its energies and efforts on R&D and new product development. The latest and newer technologies need to be adopted and R&D in auto sector needs to be strengthened,” he added.
While most major global auto OEMs are present and manufacture in India, domestic auto component industry has become an attractive supplier base for global markets. India has also emerged as a leading global hub for small cars with around 31 percent of the global small cars sold, being manufactured in India.
The sector’s impact on the Indian economy currently is significant as it contributes about 7 percent to the country’s GDP and is expected to increase to 12 percent as per the Automotive Mission Plan. Auto and auto components sectors together are the highest contributors to industrial and manufacturing GDP with 25 percent and 45 percent, respectively.
According to the Automotive Mission Plan 2016-26 (AMP 2026), the Indian auto industry aims to be in the global top three for engineering, manufacturing and export of vehicles, auto components. The industry is likely to grow from $ 80 billion to $ 270 billion by 2026 and generate an additional 65 million jobs.
“There is need for all stakeholders including Government and Industry to work together towards foreign trades, tariff, investments and long term tariffs regime,” said Dr Rajan Katoch, secretary, department of heavy industry.