The Central Indian government has geared up Automotive Mission Plan (AMP) for the automotive industry, which aims to double the input of the automotive sector to Gross Domestic Product (GDP) by 2016.
This lays particular stress on the export of auto components, small cars, and MUVs (multi-utility vehicles) and favors development of 3 export hubs near Chennai, Kolkata and Mumbai, and, each set to handle 5 lacs of vehicles per year by 2015.
In order to attain this goal a large investment of around Rs. 180 000 crore shall be needed by 2016. In export terms, the AMP says that this chance lies mainly in the small car division and India should capitalize on this and aim at its becoming a productive hub for A and B class of vehicles.
The automotive industry suggests labor laws to be changed, that it thinks, can badly crash competitiveness despite its being a small labor cost economy. It wants to get exemptions from the various sections that are covered by the Factories Act, governing the working hours per week, some provisions of the Industrial Disputes Act and the Contract Labor Act.
The operation also felt the Government's need to put off import of second-hand and re-manufactured components and vehicles. Putting forward the need for making such a plan, the document further elucidates that the sector by ways of its deep reverse and onward linkages is an industrial growth multiplier, thus, creating considerable employment.
Turnover of the Automotive industry is 165,000 crore rupees in 2006 and exports show an average of 30% compounded annual growth rate. The industry still has a meager share of 2.37% of world production.
Related Market Research Reports:
Turkey Automobile Sector Forecast (2008-2012)
Global Hybrid Car Market Forecast to 2010
China Automobile Sector to 2010
