Auto industry crosses Rs 20 lakh cr mark in FY24: SIAM

The Indian automotive industry has crossed Rs 20 lakh crore mark in FY24 and now contributes 14-15% of the total GST collected in the country, SIAM President Vinod Aggarwal said on Monday. The auto sector also contributes significantly to the direct and indirect employment generation in the country, he said while speaking at the 64th annual ACMA session here. "The Indian automotive industry has crossed a landmark figure of Rs 20 lakh crore (around $240 million) in FY24 we are contributing almost 14-15% of the total GST collected in the country," Aggarwal said.

The auto industry will contribute more and more to the GDP of the country from the current level of around 6.8%, he noted. It is not just the growth numbers, but equally important is the transformation in the technology, he added. Aggarwal stated that globally also the standing Indian auto industry has risen. "We have become the third largest passenger vehicle market, the largest two and three wheeler market, and third largest commercial vehicle market as the country marches towards Viksit Bharat by 2047," he noted.

The automotive industry is poised to grow even faster and contribute immensely to the growth of the country, Aggarwal said. He stated that the auto industry has identified 50 critical components for local production to reduce import dependence. Aggarwal said SIAM along with ACMA started the journey of enhancing indigenous manufacturing and has voluntarily set targets for increasing localisation. "It was committed to reduce import content by 60% to 20% by 2025 from the base 2019-20 levels, thereby targeting the reduced reports to the tune of Rs 20,000 to Rs 25,000 crore in five years.

We have very well achieved the first phase of import reduction of 5.8% in the first two years," Aggarwal said at the ACMA annual session here. To go to the next level and commence manufacturing of high-tech critical items for which the industry has been dependent on imports, the industry has now identified a list of 50 critical components.

"We are encouraging ACMA members to commence manufacturing them in India to enable the vehicle OEMs to source these items locally," Aggarwal said. Since most of these items are electrical or electronics, there is a need to develop capabilities and capacities in India for such high-tech items, he added.