The Indian automobile sector was able to source almost 50% of required auto parts from domestic markets under the INR 26,000 crore Production-Linked Incentive (PLI) scheme, said Union minister for heavy industries Mahendra Nath Pandey on Tuesday.
Earlier, in Jan, the ministry had extended the tenure of the scheme for automobiles and components. “While the auto industry grows in India at a phenomenal speed, our government is focusing on fuel efficiency, security, road safety and reduction in carbon emission,” Pandey said during a virtual address at the symposium of international automotive technology organised by the Automotive Research Association of India (ARAI).
The minister also said deliberations that take place during such events would not only prove helpful to the Indian automobile industry, but aid in advancement of the sector globally.
Joint secretary of heavy industries ministry Hanif Qureshi, ARAI president N Saravanan, ARAI director Reji Mathai and SAE International CEO David Schutt were in attendance.
“India has emerged as the automotive powerhouse and the world is looking at us. Currently, 7% of India’s GDP comes from the auto sector and it is likely to grow substantially in the years to come. The growth potential of the industry is huge in India because only 8% of households have automobiles. We have a long way to go,” Qureshi said.
Certification agencies like ARAI were required to strengthen the sector, especially at a time when significant changes in vehicles on alternative fuels and electricity were expected to disrupt the industry. EV sales in India were growing by a compounded annual growth rate of 49%. However, in FY23 only 1% of the passenger cars sold was electric at 48,000 units, Qureshi said.
There was acceptability for electric two-wheelers and 7 lakh were sold in FY23. The country would see a huge growth in India, which was currently the fourth largest auto market of the world, Qureshi added.