Indian Auto Sector Must Go Global To Capture Major Share Of EV Market: Union Minister Dr Mahendra Nath Pandey
Emphasising the need to make India a manufacturing hub of EVs, Union Minister Dr Mahendra Nath Pandey mentioned that India’s transition to Electric Mobility System can save Rs 20 lakh crore by 2030 on avoided oil imports alone.
The automobile industry contributes to nearly 6.4 per cent of India’s GDP and 35 per cent of manufacturing GDP and is a leading employment provider.
However, in the global automotive trade of $ 1.5 trillion, India’s share is less than 2 per cent, with total exports of $ 27 billion.
Union Heavy Industries Minister, Dr Mahendra Nath Pandey, has said that Indian auto must go global and look for a significant share of the global electric auto market.
Addressing the Round Table Conference organised by the Ministry of Heavy Industries (MHI) on Saturday (4 December) at Goa to promote electric vehicles mobility, Dr Pandey called upon the Indian industry to benefit from great upcoming opportunities in sunrise areas.
“They can achieve global scale and internationally acceptable quality products,” he said.
The Minister further stated that the auto industry’s growth would undoubtedly help us achieve India’s commitment for ‘Panchamrita’ given by Prime Minister Narendra Modi in COP-26 and provide substantial employment opportunities to Indian youth.
The Minister also mentioned a disruptive change happening in the global automotive scenario with a significant boost to ‘Electric Vehicles’ as the future of technology.
He added that innovations and technological breakthroughs in EV components catalysed this disruption. Therefore it is essential to accelerate the manufacturing and adoption of Electric Vehicles in India.
Emphasising the need to make India a manufacturing hub of EVs, he mentioned that India’s transition to Electric Mobility System can save Rs 20 lakh crore by 2030 on avoided oil imports alone.
The automobile sector is a crucial driver of India’s economic growth and the most significant contributor to the manufacturing industry. The automobile industry contributes to nearly 6.4 per cent of India’s GDP and 35 per cent of manufacturing GDP and is a leading employment provider.
India ranks number 1 in the world in two-wheelers, three-wheelers and tractors manufacturing and number 5 in passenger and commercial vehicles manufacturing.
Indian Original Equipment Manufacturers (OEMs) is $ 80.8 billion with exports of $ 11.7 billion. The size of the auto component industry is $ 57 billion, with exports of $ 15 billion and imports of $ 17.7 billion.
“In value terms, the Indian automotive industry is ranked number 11 in the world. This is because the Indian automotive industry has succeeded in mass volume, lower value, lower technology products, not in advanced automotive technology products,” the Ministry of Heavy Industries said.
In the global automotive trade of $ 1.5 trillion, India’s share is less than 2 per cent, with total exports of $ 27 billion. India’s share of advanced automotive components is only 3 per cent compared to 18 per cent globally, which is estimated to further grow to 30 per cent by 2030.