Click on the automobile section on the Make in India website and you will end up on a page with a welcome video with a supersonic driving montage in the background. It highlights the key features of India's growing automobile industry and the potential for further advancements. For instance, did you know that we are the seventh largest automobile producer in the world with an average annual production of 23.36 million vehicles or that the country is expected to have the third largest automotive market by volume, by 2016?
Despite the debate surrounding PM Narendra Modi's Make in India campaign andndash;an attempt to turn the country into a global manufacturing hub through a string of measures via enforcing easier norms and rules - the automotive industry has seen certain major developments as a result of it.
The fact that the automotive industry, which accounts for about 45 percent of the country's manufacturing gross domestic product (GDP) and 7.1 percent of the total GDP andndash;has taken the Make in India campaign positively is demonstrated by General Motors' recent announcement of a $1 billion additional investment for its Indian subsidiary, Chevrolet India; while luxury carmaker BMW also pushed up the level of localisation to 50 per cent.
Reports also suggest that Austrian motorbike manufacturer KTM-Sportmotorcycle is now going to use the country as the production hub for its dirtbike division Husqvarna Motorcycles' new on-road motorcycles, at Chakan, Pune. MV Agusta was another addition to this list by announcing its plans of marketing and selling CBU, CKD and SKD units in India, at the foot of 2015.
Also, the foreign Direct Investment (FDI) into the automobile industry has witnessed a massive 164 per cent growth, in the seven-month period from the launch of Make in India initiative andndash; on September 25, 2014. The investment has jumped to US$2189.15 million (October 2014- April 2015) from US$ 830.69 million (October 2013- April 2014), in the industry.
India is currently the seventh largest vehicle (including 2-, 4-wheelers and CVs) producer in the world with an average annual production of 23.36 million vehicles, of which 3.57 million are exported. It is currently the second largest two-wheeler producer, the largest motorcycle producer and the fifth largest commercial vehicle producer in the world.
Further, the Indian auto industry is looking at a total value of vehicle-related production to reach as much as 18.9 trillion rupees ($285 Billion) by 2026, under the Automotive Mission Plan 2016-2026, a dedicated extension for the auto sector under Make in India campaign.
A lot of carmakers have been using the Indian soil as their manufacturing hub. Hyundai is the country's second-largest carmaker but in terms of export andndash; it stands way above than any other carmaker. Last year, almost 30 per cent of the total units produced by Hyundai were made in India.
The Make in India portal underlines huge demands for low-cost electric vehicles that are suited for safe short-distance urban commutes (averaging 50-100 km/trip) in the country. The sales of these vehicles, rugged enough to perform reliably through India's summers and monsoon, are estimated to amount to 6-7 million units by 2020; representing another area worth massive potential.
Amid all this hope, though, there have been dark spots andndash; like the diesel car ban, Volkswagen scam and global crises, which could prove to be speed bumps for foreign investments in the Indian market. However, the Make in India campaign has certainly made the sub-continent an even more attractive destination for the world and has called for more exciting times ahead.
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