Investment Goal - $ 18 billion by 2010
With its vast resource pool of engineering talent and high skill labour at competitive costs,
India has the potential to become a significant player in the global auto industry, especially in engineering and component manufacturing. The projected 150% growth over the next 5 years in the domestic market for automobiles will require large scale capacity expansion; and India has the unique opportunity to emerge as a major global player in the auto component space.
The sector would require investments of over $ 18 billion over the next 5 years.
Impediments
• Inflexible labour laws preventing setting up of large scale labour intensive units
• Lack of modern testing and research facilities
• Inadequate advanced engineering talent;
Recommendations
• Make India the engineering and design hub for the automotive industry
• Incentivize the upgrade of facilities and capabilities of component manufacturers
• Develop accredited modern testing facilities
• Up-gradation of the ARAI and VRDE test facilities and at least 2 new, state-of-the art test centres, 1 in South and 1 in North India.
• Increase availability of trained human resources through the introduction of curricula in Automotive Engineering in engineering colleges and Technical Training institutes.
• Establish new specialised institutes.
