SIAM is the Apex National Body representing Indian Automobile Industry

Review of Automotive Mission Plan 2006 - 2016


“To emerge as the destination of choice in the world for design and manufacture of automobiles and auto

components with output reaching a level of US$ 145 billion accounting for more than 10% of the GDP and

providing additional employment to 25 million people by 2016.”

The turnover of automotive industry was more than 45% of the manufacturing GDP of India during FY14. The importance of this industry to the national economy can be seen by way of the size of its turnover compared to India’s GDP and contribution across several other parameters:

• 7.1% of India’s GDP

• 27% of India’s industrial GDP

• 4.3% of overall exports (second only to textiles & handicrafts)

• 13% of excise revenues

• Incremental employment generation in excess of 19 million since FY06

• Total investment in excess of US$ 35 bn of which US$ 24 bn is contributed by automobile

companies while US$ 11 bn is contributed by automotive component companies

• 8% of the country’s R&D expenditure

• Improvement in fuel efficiency of passenger vehicles resulting in fuel savings of 8.6 bn litres between FY06 and FY14

The Indian automotive industry has witnessed significant growth during the first half of Automotive Mission Plan 2006-2016 (AMP 2016) i.e. FY06 to FY11. During this period all vehicle segments registered a Compound Annual Growth Rate (CAGR) in excess of 10%. However, from FY11 the slowdown in global economy coupled with weakness in the fundamental growth drivers has resulted in decline in growth across vehicle segments except for two wheelers, which posted a CAGR of 4.6%. This has resulted in gaps between actual performance of the industry vis-à-vis targets envisaged under AMP 2016. 

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