The worsening scenario of the Indian automobile industry will finally bring government officials and the players in the automobile industry including representatives from the industry body, Society of India Automobile Manufactures? (Siam) to discuss the entire scenario and revise the targets set under the Automotive Mission Plan (AMP), if needed.
?Though there has been no revision in targets under AMP so far but the heavy industry ministry has sent a notification to the finance ministry, commerce ministry and Siam to convene a meeting with Development Council on December 1 wherein various issues impacting the auto sector would be discussed,? says Dilip Chenoy, director general, Siam.
Despite the 14% dip in sales in the automobile industry in October, Chenoy is optimistic that the industry would be able to meet the AMP goals. ?I am fairly confident that we will meet the earlier set goals of AMP if we take concerted efforts to resolve major issues like credit availability and high interest rates,? he says.
Chenoy said that at the time of formulating the AMP in 2006, we had taken two cycles of slowdown in consideration and hence the target set is pretty conservative and therefore it is unlikely that we will miss the goal.
In the AMP 2006-16, the government and the industry had estimated that while the total turnover of the Indian automotive industry would grow from $34 billion in 2006 to $122-159 billion in 2016, its contribution to the country?s GDP will be up to 10% from 5% in 2006 and there would be an additional employment of 25 million people by 2016.