The Hindu Business Line : Auto sector envisages turnover of $145 b by 2016

The AMP proposed a 25-point plan, including making India the manufacturing and export hub for small cars, multi-utility vehicles, two and three-wheelers, tractors and components.

NEW DRIVE: The Prime Minister, Dr Manmohan Singh, with the Minister for Heavy Industries, Mr Santosh Mohan Dev (left), the Tata Group Chairman, Mr Ratan Tata, the Hero Honda Motors Chairman, Mr Brijmohan Lal Munjal, and the Automotive Components Manufacturers' Association President, Mr Raghu Mody, at the release of `Automotive Mission Plan 2006-2016' in New Delhi on Monday. — Kamal Narang

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New Delhi Jan. 29 The automobile sector is set to see an increase in turnover to $145 billion by 2016 from the present $35 billion, the Heavy Industries Minister, Mr Santosh Mohan Dev, said on Monday.

To make India a significant player in the global market, the sector needs an investment of around $40 billion to help raise exports to a minimum of $35 billion from $4.1 billion at present, Mr Dev said after releasing the Automotive Mission Plan (AMP) 2006-2016 report on the sector.

The report also estimates that the contribution of the auto sector to the country's gross domestic product is expected to increase to more than 10 per cent by 2016, compared with 3-4 per cent at present. ``Keeping in mind the shift of manufacturing base from developed countries to emerging economies... the automotive mission plan envisages fiscal and policy modulation with a focus on exports,'' Mr Dev said.

Mr Dev added that the automotive sector should be able to provide an additional employment to 25 million people in the next nine years.

The AMP proposed a 25-point plan, including making India the manufacturing and export hub for small cars, multi-utility vehicles, two and three-wheelers, tractors and components. Industry players welcomed the AMP, saying it was a much-needed step in the right direction.

``Now, we have the support and guidance of the Government and it will help us in planning our future investments in India,'' the Honda Siel Cars India President and CEO, Mr Masahiro Takedagawa, said.

The Maruti Udyog Ltd Managing Director and CEO, Mr Jagdish Khattar, said the plan would help in identifying key areas to propel growth in the sector. The Hyundai Motor India Managing Director, Mr H.S. Lheem, welcomed the plan, but said the Government should be consistent in framing policies as the industry required time to follow any changes in norms.

Hyundai has been seeking clarity over the definition of small car, which according to the Auto Policy is 3,800 mm in length, while the Finance Ministry in last year's Budget gave excise benefits to "small cars' with a length 4,000 mm.

A proposal has been made in the AMP to set up a monitoring committee under the chairmanship of the Secretary, Ministry of Heavy Industries and Public Enterprises.