Make in India to be led by automobile, auto component sectors
As the Make in India story unfolds, the road ahead for the automobile industry is fraught with both excitement and challenge. The Make in India story will, in all likelihood, be led by the automobile and auto component sector as this accounts for over 30% of the entire manufacturing sector in India. But the auto sector can’t grow alone. It will need to be accompanied by growth in other manufacturing sectors, most importantly in the power sector.
The National Electric Mobility Mission Plan, the crash regulations, the auto fuel policy and the CAFE (corporate average fuel efficiency) norms are all at various stages of being rolled out. These are all designed to give the consumer more choice of alternate technology vehicles, safer vehicles, a cleaner environment and are aimed to bring India in line with the best of international practices, including of fair trade. All of these come at a cost. And who is going to pay for it? The auto industry or the consumer?