New Delhi, April 11: The country’s automotive component production is set to grow to $145 billion by 2030, with exports tripling from $20 billion to $60 billion, while generating 2-2.5 million new employment opportunities, a NITI Aayog report projected on Friday.
This growth would lead to a trade surplus of approximately $25 billion and a significant increase in India’s share of the global automotive value chain from 3 per cent to 8 per cent, according to the report titled “Automotive Industry: Powering India’s Participation in Global Value Chains”.
Additionally, this growth is expected to generate 2-2.5 million new employment opportunities, bringing the total direct employment in the sector to 3-4 million, the report mentioned.
India has emerged as the fourth-largest global producer after China, the US and Japan, with an annual production of nearly 6 million vehicles. The Indian automotive sector has gained a strong domestic and export market presence, particularly in the small car and utility vehicle segments.
Supported by initiatives like ‘Make in India’ and its cost-competitive workforce, India is positioning itself as a hub for automotive manufacturing and exports, the report noted. It was launched by Suman Bery, Vice Chairman, NITI Aayog in presence of Dr VK Saraswat, Member, NITI Aayog and other officials.
The automotive industry is undergoing a transformative shift towards electric vehicles (EVs), driven by rising consumer demand for sustainable mobility, regulatory pressures to reduce carbon emissions, and advancements in battery technology. EV sales have surged globally, reshaping the automotive manufacturing landscape.
In parallel, the rise of Industry 4.0 is transforming automotive manufacturing. Technologies such as Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), and robotics are enhancing production processes, improving productivity, reducing costs, and enabling greater flexibility.
These digital advancements are not only optimizing manufacturing but also fostering new business models centred around smart factories and connected vehicles, said the report. NITI Aayog’s report also outlined several strategic fiscal and non-fiscal interventions aimed at enhancing India’s global competitiveness in the automotive sector.
The interventions are structured across four categories of automotive components based on their complexity and manufacturing maturity –emerging and complex; conventional and complex; conventional and simple; and emerging and simple.
IANS