NITI Aayog Releases Report on Automotive Sector’s Global Competitiveness

NITI Aayog yesterday released a report titled “Automotive Industry: Powering India’s Participation in Global Value Chains”. The report offers an extensive analysis of India’s automotive sector. It highlights both opportunities and challenges and outlines a pathway for positioning India as a key player in global automotive markets.

The report was launched by Vice Chairman, NITI Aayog Suman Bery in the presence of CEO, NITI Aayog BVR Subrahmanyam. NITI Aayog’s report also outlines several strategic fiscal and non-fiscal interventions aimed at enhancing India’s global competitiveness in the automotive sector. The interventions are structured across four categories of automotive components based on their complexity and manufacturing maturity which are Emerging and Complex, Conventional amd Complex, Conventional and Simple and Emerging and Simple.

As per the report, in 2023, global automobile production



reached approximately 94 million units and the global automotive components market was valued at two trillion US dollars , with the export share reaching nearly 700 billion dollars. India has emerged as the fourth-largest global producer after China, USA and Japan, with an annual production of nearly six million vehicles. It added that the Indian automotive sector has gained a strong domestic and export market presence, particularly in the small car and utility vehicle segments. The report also highlights that with ‘Make in India’ and its cost-competitive workforce, India is positioning itself as a hub for automotive manufacturing and exports.

Speaking on the occasion, NITI Aayog CEO BVR Subrahmanyam said that detailed analysis has been done to prepare the report. He said. the global auto component market is two trillion dollars and out of this, India’s share is 70 billion dollars.