Kenichi Ayukawa, Managing Director and CEO of Maruti Suzuki and the president of the Society of Indian Automobile Manufacturers (SIAM), feels the Indian auto sector will need another 15 years to become nearly self-reliant in every aspect of the automotive supply chain.
Speaking at SIAM's 62nd convention, Ayukawa said, "India will be near 100 percent self-reliant in every aspect of the automotive supply chain by 2047."
At the SIAM Convention, Prime Minister Narendra Modi said there was a need for the auto industry to make innovations in green mobility to save the environment and make India self-reliant.
Ayukawa said future technologies like BEV, ethanol, flex fuel, hydrogen, and biomethane would need some enablers. "We must increase traction on other frontiers like safety, telematics and human resource development".
He added that the auto industry exported the most number of cars ever in 2021-22. According to data by SIAM, a total of 5,617,246 vehicles were exported in 2021-22, a 35.9 percent increase from 2020-21.
Exports through the years
| Category | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
|---|
| Passenger vehicles | 758,727 | 748,366 | 676,192 | 662,118 | 404,397 | 577,875 |
| Commercial vehicles | 108,271 | 96,865 | 99,933 | 60,379 | 50,334 | 92,297 |
| Three-wheelers | 271,894 | 381,002 | 567,683 | 501,651 | 393,001 | 499,730 |
| Two-wheelers | 2,340,277 | 2,815,003 | 3,280,841 | 3,519,405 | 3,282,786 | 4,443,018 |
| Quadricycles | 1,556 | 1,605 | 4,400 | 5,185 | 3,529 | 4,326 |
| Total | 3,480,725 | 4,042,841 | 4,629,049 | 4,748,738 | 4,134,047 | 5,617,246 |
Source: SIAM
Ayukawa said mass segments like entry-level cars and two-wheelers are facing a huge drop in demand due to high acquisition costs.
The Indian Automotive Industry contributes about 6 percent to the country’s total Gross Domestic Product (GDP) and around 35 percent to the manufacturing GDP.
A note from SIAM stated, "with the pro-active support from the government of India, the Indian automotive industry has been able to withstand the severe impact of the COVID-19 pandemic in the last two years."
"Government of India’s support has been phenomenal, especially through the introduction of FAME and PLI schemes, as these are helping the industry to smoothly transit into the next realm of advanced automotive technologies and become self-reliant," the note further read.
Vinod Aggarwal, VP & President Elect of SIAM said, “Auto sector is on the road to recovery and the industry must and will work with government to ensure development.”
First Published: Sept 15, 2022 12:09 PM IST
