Indian Economy News

India aims to be among the top two auto makers, double auto production in five years

India is currently drafting an ambitious Automotive Mission Plan 2047 (AMP 2047) to boost vehicle production significantly. The plan aims to increase vehicle production to 50 million by 2030 and 200 million by 2047, positioning the country among the top two global automobile producers. The mission prioritises localisation of sustainable vehicle production across hydrogen, electric, compressed natural gas, and compressed biogas, without immediate curbs on petrol or diesel vehicles. However, the share of internal combustion engine (ICE) vehicles is expected to reduce as newer and cleaner fuel options proliferate by 2047. The plan is being prepared in collaboration with industry representatives and is expected to be unveiled by the end of FY26. India produced about 25 million vehicles in FY23.
The goal of doubling passenger vehicle (PV) exports by 2030 is also being finalised, with steeper targets for 2047. Roughly 30% of domestic PV production is expected to be exported by 2030, increasing to 40% by 2047. A meeting of seven sub-committees tasked with preparing various aspects of AMP 2047 was held last week. The deliberations were conducted in collaboration with ministries, industry bodies, academic institutions, and testing agencies. The focus is on technology transfer to ensure the development of local supply chains. The plan seeks to integrate the collective vision of stakeholders, including Original Equipment Manufacturers (OEMs), auto component manufacturers, policymakers, academia, and end users, to address challenges like technological advancements and charging infrastructure.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.