Auto mission plan to make India a $145-billion auto hub

29 January 2007

Prime minister Dr Manmohan Singh has said the 10-year 'automotive mission plan' (AMP) 2006-2016 envisages auto sector investments of $40 billion and aims to enable India a global automobile player in the next ten years.

The plan will lay down the road map for the government and auto industry to achieve a turnover for the sector to increase to $145 billion by 2016, up from the current $35 billion, accounting for 10 per cent of GDP.

Santosh Mohan Dev, minister of heavy industries and public enterprises said that India's auto sector exports needed to be raised from $4.1 billion dollars, to at least $35 billion to make India a substantial player in the global market.

According to Dev, this would require an investment of around $40 billion to ensure employment to about 25 million people by 2016.

The automobile mission is a 25-point plan, to make India a global manufacturing and export hub for small cars, multi-utility vehicles, two and three-wheelers, tractors and components.

The industry has welcomed the status of a "mission" being accorded to the industry, but have also pointed out the need for consistency in framing policies as the industry required time to follow any changes in norms.