India's automotive sector estimated to become a $1 trillion industry, by the year 2035, according to experts.
A report released on Wednesday, by the consulting firm Arthur D Little, has forecasted that India’s automotive sector has the potential to burgeon into a $1 trillion export-oriented industry by 2035.
The report titled, “Transforming India into a Global Automotive Hub: Roadmap for the Automotive Ecosystem”, elaborates that this evolution is possible through advancements in manufacturing, innovation, and technology.
The research accentuates the importance of investments ranging from $100 billion to $150 billion to achieve this goal.
Arthur D Little’s Managing Partner, (India & South Asia), Barnik Chitran Maitra, highlights the potential for India’s automotive sector to become a global epicentre for design, development, and production. This transformation is expected to allure substantial foreign investments, as stated in a recent report.
This report holds substantial importance in projecting India’s automotive industry’s trajectory. As one of the world’s major automobile sectors, India stands alongside global automotive leaders such as Germany, Japan, and the United States.
To attract foreign investments, it is important to focus on increasing standards of manufacturing, and Engineering and Research and Development (ER&D) centres. The report further emphasises the pivotal role that local Original Equipment Manufacturers (OEMs) are poised to play in realising this vision.
The global automotive research and development (R&D) software market is estimated to triple in size by 2030, reaching $400 billion. India, recognised as the world’s software hub, can capitalise on its status as the preferred offshore destination for such endeavours, according to the report.
Maitra stated that, “India’s strength in automotive software and ER&D (engineering research and development) can thrive by offering solutions aligned with emerging trends like zonal architecture and Advanced Driver Assistance Systems (ADAS). India has the potential to be an automotive innovation leader, with a thriving well-funded startup ecosystem.”
It is important to recognise the crucial role of concerted efforts from by stakeholders involved. Elaborating on the same, Maitra comments, “Unlocking the true potential of India’s automotive sector requires a robust dialogue and concerted actions among all stakeholders, including the government.”
It is evident that these initiatives can help increase significant influence in establishing India as a formidable force in the global automotive market.
