Indian automobile industry is capable of becoming export-led US$ 1 trillion by 2035: Report

According to a report by Arthur D. Little, the Indian automobile industry has the potential to grow into a US$ 1 trillion export-driven industry by 2035. As per the report, the industry can grow to the size enabled by manufacturing, innovation, and technological leadership.

India's automotive industry has the potential to evolve into a global hub for design, development, and production, appealing to global markets, according to Arthur D. Little’s Managing Partner (India & South Asia) Mr. Barnik Chitran Maitra. He said, “India's strength in automotive software and ER&D (engineering research and development) can thrive by offering solutions aligned with emerging trends like zonal architecture and Advanced Driver Assistance Systems (ADAS).” Furthermore, he added that the country has the potential to be an automotive innovation leaders, with a thriving well-funded startup ecosystem.

He continued that in order to do this, all industry players must improve their capabilities for reliable and competitive global manufacturing.

This demonstrates the increasing pace of innovation within the local automotive ecosystem and the evolving dynamics of disruption, which, if appropriately tapped, can propel India into a position of global automotive leadership.

According to the report, India can take advantage of its status as the world's software hub and the top offshore destination for such activities as the market for automotive R&D and software is predicted to increase threefold to US$ 400 billion by 2030.

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