The Automotive Mission Plan for the next decade, beginning 2016, is being prepared and will be finalised by the middle of next year.
According to the sectoral document for automobiles under the 'Make In India' campaign kicked off by Prime Minister Narendra Modi last week, currently preparation for the mission plan auto industry is underway.
"The Automotive Mission Plan (AMP)II for the period 2016-26 is under preparation and will be finalised by mid 2015," the document said.
Announced in 2006, the AMP 2006-16 had envisaged India to become an international hub for designing and manufacturing of automobiles and auto components with output reaching USD 145 billion and accounting for more than 10 per cent of the country' Gross Domestic Product (GDP).
The plan also envisages the Indian automobile market to provide employment to 25 million people by 2016.
However, industry body SIAM had announced that economic slowdown in the last three years will force the Indian auto industry to miss by up to 25 per cent of the targets set in ambitious AMP 2016.
The Indian automotive industry currently accounts for around 7 per cent of the GDP and employs about 19 million people both directly and indirectly.
The vertical, which posted a turnover of USD 58.5 billion in 2010-11, is estimated to become the third largest auto market in the world by 2016, accounting for more than 5 per cent of global vehicle sales.
"By 2015, India is expected to be the fourth largest automotive market by volume in the world. India's car market has the potential to grow to 6 million plus units annually by 2020," the document said.
Factors like emergence of large automotive clusters in the country, Delhi-Gurgaon-Faridabad in the north, Chennai- Bengaluru-Hosur in south and Jamshedpur-Kolkata in east would help fuel growth, it added.
Besides, a growing working population and an expanding middle class are expected to remain key demand drivers, it added.
India currently is the second largest two-wheeler manufacturer, the largest motorcycle producer and the fifth largest commercial vehicle manufacturer in the world.
Two wheeler production has grown from 8.5 million units annually to 15.9 million units in the last seven years, while tractor sales in the country are expected to grow at 8-9 per cent in the next five years, the document said.
