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Eco Project

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kulmeet kaur jolly
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35 views

Eco Project

Uploaded by

kulmeet kaur jolly
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SYNOPSIS

The automobile industry is one of the most important drivers of economic


growth of India and one with high participation in global value chains. The
growth of this sector has been on the back of strong government support which
has helped it carve a unique path among the manufacturing sectors of India.
The automobiles produced in the country uniquely cater to the demands of low-
and middle-income groups of population which makes this sector stand out
among the other automobile-producing countries. This also analyzes the roles
of government policy, infrastructure, and other enabling factors in the
expansion of the automobile and automotive component sectors of India. In
2017, India became the world’s fourth largest automobile market, and the
demand for Indian vehicles continues to grow in the domestic and international
markets. To meet the future needs of customers (including the electrical
vehicles) and stay ahead of competition, manufacturers are now catching up on
upgradation, digitization, and automation. This also analyzes India’s national
policy in light of these developments.

8 Conclusion
With its buoyant economy, a large young population, and growing foreign
direct investment, India has been an attractive investment destination for
global automobile and component manufacturers since the last two decades.
Its growth story has been dominated by more homegrown lead firms.
However, absorption of global best practices has been slower than in China.
Strategies of firms in the Chinese auto industry provided a boost to
technological learning more quickly and broadly than in India. 78 Capable of
end-to-end production, India has also become an assembly hub for large cars
and manufacturing hub for small cars. Firms have started exporting to other
countries. India-based manufacturers are engaged in global innovation
networks and sourcing suitable technologies from all over the world to
complement their own R&D efforts.

The AMP 2026 envisions that by the year 2026, the Indian automotive
industry will be among the top three of the world in engineering,
manufacture, and export of vehicles and auto components, growing in value
to over 12% of India’s GDP and generating an additional 65 million jobs.

According to OICA statistics, the Indian industry accounted for just 5.38% of
production in the cars segment and 3.48% of production in the commercial
vehicle segment in 2017. It has also not created lead firms or MNCs of the
scale that other more successful players like Japan, South Korea, and other
western countries have created. In spite of the success of government policy
in building auto supplier industry, India continues to be a net importer of
auto components with its trade deficit for auto components increasing from
US$ 210 million in 2004–2005 to US$ 4.4 billion in 2009–2010 and US$
13.8 billion in 2015–2016.

The current policy debate is around the issue of how greater resource
efficiency can be achieved and the need for newer materials in light of the
industry’s plans to produce electric vehicles in India. Innovation in new
product development is lagging behind and remains critical for the future of
India to achieve competitive superiority or at least maintain its low-cost
advantage. Manufacturing technologies need to be upgraded continuously.
Large investments for developing new indigenous technologies that are green
and compliant with recognized high efficiency standards would help India
move up the value chain.

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