It has suggested to explore possibility of promoting exports of Indian made economy vehicles in developing countries and middle and low income groups in developed countries. “For this strong promotional measures for Indian products are required as there is a lack of confidence in made in India brand.”
Emphasising the need to evolve an effective strategy in this regard, the paper said: “The multinational companies (MNCs) and overseas partners of joint venture may also not give priority to exports as this may affect business of their other units abroad.” Tremendous importance should be given to foreign direct investment (FDI) in this sector to promote exports of automobiles. Penetration of automobile markets in developed countries will require good dealers network, availability of a range of cars to meet customers choice and after sales service. These requirements can be met only if large automobile MNCs have presence in India on their own or in collaboration with an Indian partner.