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What is Indian auto industry's India@100 vision? Automobile body chief replies
SIAM President Kenichi Ayukawa said on Thursday that the Indian automobile industry aims to be among the top two global producers in every segment of vehicles over the next 25 years.
The Society of Indian Automobile Manufacturers (SIAM) has said that India's automobile industry aims to be among the top two global producers in every segment of vehicles over the next 25 years.
"Industry has prepared a vision statement for India at 100. According to this, the Indian automobile industry will be one of the two largest producers in every segment of automobiles in the world," SIAM President Kenichi Ayukawa said during the automobile body's 62nd annual session on Thursday, news agency PTI reported.
Ayukawa said that the Indian automobile industry also aims to have a dominant share of clean energy vehicles on a life-cycle basis in the next 25 years.
To achieve the above targets, the industry would require some key enablers like having single-minded pursuit of competitiveness, he added.
"Second is the ease of doing business. A long-term regulatory roadmap can be helpful in better planning of investments, technologies and product development," the SIAM president said during the automobile body's annual session on Thursday.
Giving details regarding the current market conditions, Kenichi Ayukawa pointed out that the domestic automobile industry has been going through a long-term, deep structural slowdown even before the Covid pandemic surfaced.
In the decade from 1990 to 2000, the passenger vehicle segment grew at a compound annual growth rate of 12.6%, Ayukawa said on Thursday.
"This came down to 10.3 per cent in the next decade from 2000 to 2010 and further down to just 3.6 per cent in the decade from 2010 to 2020. If we look at a five-year period, the drop is much steeper. A similar steep drop is seen in other segments also," Ayukawa further said.
The growth of the Indian automobile industry was further impacted by multiple other challenges on both the demand and supply side that came along with the Covid pandemic, he noted
In the present situation, the industry is going through a unique phase with some segments witnessing recovery after the pandemic, while others are still struggling to cope.
“Mass segments like entry-level cars and two-wheelers are facing a huge reduction in demand owing to the significant increase in the acquisition cost..other segments which are seeing good demand, there are supply-side challenges mainly being the semiconductor shortage.”
Due to the above challenges, all segments are still below the industry's peak of 2018-19, Kenichi Ayukawa said.
(With PTI inputs)
