Society of Indian Automobile Manufacturers (SIAM) President Vinod Aggarwal on Monday said the Indian automotive industry has crossed Rs 20 lakh crore mark in FY24 and now contributes 14-15 per cent of the total GST collected in India.

Speaking at the 64th annual Automotive Component Manufacturers Association (ACMA) session, the President said the auto sector also contributes significantly to the direct and indirect employment generation in the country.

The auto industry will contribute more and more to the GDP of the country from the current level of around 6.8 per cent, he noted.

He said that it is not just the growth numbers but equally important is the transformation in the technology. The Siam President also stated that globally also the standing Indian auto industry has risen.

“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.

“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.

The automotive industry is poised to grow even faster and contribute immensely to the growth of the country, Aggarwal said. He stated that the auto industry has identified 50 critical components for local production in order to reduce import dependence.

Aggarwal said that since most of these items are electrical or electronics, there is a need to develop capabilities and capacities in India for such high tech items.

“Besides, having expertise in the conventional internal combustion engine technologies such as gasoline and diesel, the industry has now developed strong capabilities in multiple powertrains such as CNG and electrified vehicles such as electric vehicles and hybrids,” he added.

The industry is also developing hydrogen and fuel cell based technologies.

Aggarwal also thanked Ministry of Heavy Industries for identifying the need to develop the third automotive mission plan from 2024 to 2047, He said this will lay down the broad controls of how the industry is expected to grow over these years in three distinct phases, from now to 2030 from 2030 to 2037 and finally, 2037 to 2047.

The automatic mission plan will become a guiding document, not only for the entire automobile and the auto component industry for committing and planning the investments in the country, but will also serve as a ready reckoner for all the line ministries of the government of India, and also to many state governments for framing suitable policy measures that need to align with the growth and research for the auto sector, he noted.