Auto industry set to grow five fold by 2016

Summary

• India and had limited contribution to the economy, currently contributing about 5% of the GDP and it is targeted to grow five fold by 2016 and account for over 10% of India’s GDP.
• production of 185,000 units in 1970-71, the industry currently produces 11 million vehicles. And from a turnover of $34 billion, the industry is expected to reach a turnover of $150-200 billion in next ten years.
• Exports have increased immensely from a mere 38,000 units in 1990-91 to 1.01 million units in 2006-07. Some estimates suggest that by 2010, car exports, alone would reach 1 million.
• GDP is expected to have merely doubled. In other words, aim is to achieve industry output $145 billion and consequently, make the automotive sector’s contribution rise to at least 10% of the country’s GDP.
• The target is to attract investment worth USD 35-40 billion by 2016

Thoughts

India’s automotive sector is definitely growing by leaps and bounds and we have the numbers to prove it. Their plans are ambitious and realistic. The right amount of investment in India could yield much greater rate of return.

~ by noorgias on April 8, 2008.