|To emerge as the destination of choice in Asia for the design and manufacture of automobiles and automotive components. The output of India?s automotive sector will be USD 145 billion, contributing to more than 10% of India?s Gross Domestic Product and providing employment to 25 million persons additionally by 2016?.
This is the vision statement of Automotive Mission Plan (AMP) 2006-2016, which was prepared by Ministry of Heavy Industries & Public Enterprises and released by the Hon?ble Prime Minister of India, Dr. Manmohan Singh on 29th January 2007. These lines clearly explains that the growing automobile industy of india is one of the most apt platform backing on which the country can reach tremendous economic growth. In 2006, when this AMP was released, the automotive sector was contributing 5% to the country's GDP, now it has raised to 9%. Likewise, if the growth continues than by 2016, the AMP will allow the automotive sector to reach the target of making a contribution of 10% to the country's gross GDP. The AMP plan is developed in a way so that it answers to the some basic questions like:
• Where does the Indian Automotive Industry stands today?
• To what heights we want to take our automotive sector by 2016?
How we are going to attain those heights?
Executing such Automotive mission plan was necessary on the grounds that in last few years Indian manufacturing sector has become internationally competitive and vibrant with a new energy to grow. Under such a scenario, by having a proper AMP plan the country can make out best and efficient profit from this sector. It is estimated that the proper implementation of this plan will open new vistas of opportunity where India will be manufacturing more vehicles and components for domestic sales, will experience a better export business of vehicles and components and also of services such as design, engineering, and back office operations.
Owing to the success of the AMP, India will continue to enjoy its eminent position of being world largest tractor and three wheeler manufacturer. It will also able to retain its position of being world's second largest two wheeler manufacturer. Not only this, there are also chances that India will raise from its 11th position to the 7th position in the ranking of world's largest car producers.
For the successful implementation of the automotive mission plan an incremental investment in the order of USD 35-40 billion will be required to come into Indian auto industry. A major part of this investment is estimated to flow from over the next ten years investment of the existing manufacturers operating in India and also from globalmultinational corporations (MNCs) seeking to make India their manufacturing base. Iin toe to the proper execution of this plan, it is estimated that a huge base of employment opportunities will develop. But of course, there are challenges to be hit down. the major one will be like
• Developing a supply base in terms of technical and human capabilities,
• Achieving economies of scale and lowering manufacturing costs
• Overcoming infrastructural bottlenecks
• Stimulating domestic demand and exploiting export and international business opportunities.