India (Part 1): Auto industry envisions quadrupling in next ten years
Automotive Mission Plan 2026
Maruti Suzuki's Baleno, built in India and
strategically designed for sale worldwide
(photgraphed at the Tokyo Motor Show 2015).
This report, Part 1, outlines major, recent developments taking place in the overall automotive industry in India. Part 2 will report on performance and the latest plans being carried out by the individual OEMs.
In September 2015, the Indian government jointly with the Society of Indian Automobile Manufacturers (SIAM) announced the Automotive Mission Plan (AMP 2026), a comprehensive vision for the automotive industry for the next 10 years. The plan envisions expanding the auto industry, i.e., its annual production output, between 3.5 and 4 times the current output produced between April 2014 and March 2015. The Indian government is promoting its "Make in India" program designed to encourage foreign investment. AMP 2026 is hoped to be the engine driving the "Make in India" program.
Even though the Indian market contracted during the 2013/2014 fiscal year, it is showing signs of recovery after Prime Minister Modi assumed office, actually increasing 8.7% between April and November 2015, compared to the same-period the year before.
According to LMC Automotive, the annual unit production in India will reach 5 million in 2018. At the end of this report, we have provided annual production forecasts by LMC Automotive, through 2018.
Even though OEMs are concerned with slowdowns in many emerging countries, they are bullish on India, which is still regarded as an especially strong and resilient market.
India (Part 1): Extension of reform measures drives sales growth (October 2014)
India (Part 2): OEMs plan to launch models with strong local potential (October 2014)