Indian Auto sector must go Global and look for major share of global electric auto market: It will lead them to achieve size and scale, says Dr Mahendra Nath Pandey

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Dr Mahendra Nath Pandey, Union Heavy Industries Minister has said that Indian Auto must go Global and look for major share of global electric auto market. It will lead them to achieve size and scale.  Addressing  the Round Table Conference organized by Ministry of Heavy Industries (MHI) today  at Goa to Promote Electric  Vehicles Mobility, Dr. Pandey  called upon the  Indian industry to benefit from great upcoming opportunities  in sunrise areas “ They can achieve global scale and internationally acceptable quality products”, he said.  


The Minister further  stated that growth of Auto Industry will certainly help us to achieve India’s commitment for “Panchamrita” given by the Prime Minister Narendra Modi   in COP 26 and give huge employment opportunities to Indian youth.  The Minister  also mentioned that there is a disruptive change happening in the global automotive scenario with big boost to ‘Electric Vehicles’ as the future of technology. He added that innovations and technological breakthroughs in EV components are catalyzing this disruption. Therefore it is essential to accelerate the manufacturing and adoption of Electric Vehicles in India. He said, ‘We also need to make India manufacturing hub of EV’. He also mentioned that  India’s transition to Electric Mobility System can save Rs 20 lakh crore by 2030 on avoided oil imports alone. 





Referring to the (FAME India II) scheme, He sated that Ministry of Heavy Industries is supporting the ecosystem through our national flagship schemes such as Faster Adoption and Manufacturing of Electric Vehicles in India (FAME India II) scheme, National Programme on Advanced Chemistry Cell (ACC) and Production Linked Incentive (PLI) scheme for Automobile and Auto Components. He informed that these three major schemes are sanctioned by the government with a total outlay of Rs 54,038 crore. FAME-II scheme incentivizes demand for EVs by providing upfront subsidies and creating EV charging infrastructure. The scheme envisages supporting a demand of 10 Lakh electric 2 Wheelers, 5 lakh Electric 3 Wheelers, 55,000 Electric Cars and 7,090 Electric Buses. 


Talking about the the PLI Scheme for Automobile and Auto Components, Dr. Pandey said that  it  will incentivise  manufacturing of high technology automobile and auto components in India. The program will lead to fresh investment of over ₹42,500 crore and will create additional employment opportunities of over 7.5 lakh jobs, he added.





Dr. Pandey  further stated  that growth of shared, connected and electric mobility presents a huge opportunity for India in terms of sustainability, job creation and giving impetus to manufacturing through ‘Make In India’


He expressed hope that this round table will facilitate all of us to work out strategies to promote adoption of Electric Vehicles in India and attract investment in manufacturing of EVs, batteries and high technology automotive components in India. He  emphasized that  a transformed E-mobility ecosystem will require participation and collaboration across diverse stakeholder groups.


Goa State Electric Vehicle  Policy 2021 was launched by  Dr. Pandey and Goa Chief Minister  Shri Pramod Sawant at the Round Table Conference.  It provides  for Fiscal and Non-fiscal incentives for Electic Vehicles, electrification of ferries & focus on R&D and Skill Development. 10 electric buses sanctioned under FAME 2  were also flagged off by  Dr. Pandey and Goa CM. 


Ministers of Transport and Chief Secretaries/Senior Officers from States, Industry Leaders from Automotive Sector, Start Ups and Technical Experts are participating in the conference. Shri Krishan Pal, Gurjar, Minister of State of Heavy Industries, Shri Arun Goel, Secretary, Heavy Industries participated  in the conference. Shri Amitabh Kant, CEO, NITI Aayog delivered  the Key Note address on the occasion. 




Automobile sector is a key driver of India’s economic growth and the largest contributor to the manufacturing sector. Automobile industry contributes to nearly 6.4 per cent of India’s GDP and 35 per cent of manufacturing GDP and is a leading employment provider.


India ranks number 1 in the world in two wheelers, 3 wheelers and tractors manufacturing and number 5 in passenger and commercial vehicles manufacturing. The size of Indian Original Equipments Manufacturers ( OEMs) is US $ 80.8 billion with exports of US $ 11.7 billion. Size of auto component industry is US $ 57 billion with exports of US $ 15 billion and imports of US $ 17.7 billion. In value terms Indian automotive industry is ranked number 11 in the world. This is because Indian automotive industry has succeeded in mass volume, lower value, lower technology products, not in advanced automotive technology products. In global automotive trade of US $ 1.5 trillion India’s share is less than 2 per cent with total exports of US $ 27 billion. India’s share of advanced automotive components is only 3 per cent compared to 18 per cent globally which is estimated to further grow to 30 per cent by 2030.


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