Auto Sector Boosts Local Production of 50 Key Components to lower Imports By CIOTechOutlook Team

Auto Sector Boosts Local Production of 50 Key Components to lower Imports

CIOTechOutlook Team | Tuesday, 10 September 2024, 10:28 IST

The automotive sector is ready to expand more rapidly and make a significant contribution to the country's growth, Aggarwal added. He further said that the auto industry has pinpointed 50 vital parts to be manufactured locally to lessen reliance on imports.

According to Vinod Aggarwal, the President of SIAM, the Indian automobile sector has surpassed the ?20 lakh crore milestone in FY24 and currently makes up 14-15% of the overall GST revenue collected in the nation. He mentioned at the 64th annual ACMA session that the automotive industry plays a major role in creating both direct and indirect employment opportunities in the country.

"The Indian automotive industry has crossed a landmark figure of Rs 20 lakh crore (around USD 240 million) in FY24...we are contributing almost 14-15 per cent of the total GST collected in the country," Aggarwal said.

He mentioned that the auto industry's contribution to the country's GDP is expected to increase beyond the current 6.8% level. He emphasized that not only the growth figures matter, but also the technological advancements are equally significant. Aggarwal said that the Indian auto industry's standing has also improved on a global scale.

"We have become the third largest passenger vehicle market, the largest two and three wheeler market and third largest commercial vehicle market as the country marches towards Viksit Bharat by 2047," he noted.

Aggarwal mentioned that SIAM, in collaboration with ACMA, initiated efforts to boost domestic manufacturing and has set goals for increasing localization on a voluntary basis.