ECONOMIC SURVEY: Auto exports below potential

The high growth Indian automobile industry would attract a massive investment of Rs 80,000 crore by next year, but its export potential still remains untapped despite it gaining global recognition, the Economic Survey 2005-06 said today.

"While a beginning has been made in the export of vehicles, the potential in this area is far from fully tapped," the Survey said.

It made a case for higher foreign shipments even as automobile exports as a proportion of total production has increased to 8.9% in 2005-06 from 2.9% in 1999-2000.

"During the last two years, exports from the sector has grown significantly, owing mainly to the export of cars and two-three-wheelers. For passenger cars and three-wheelers, exports in 2005-06 accounted for 18-19% of total production," the Survey said.