Indian automobile industry capable of becoming export-led $1 trillion by 2035: Report
Indian automobile industry capable of becoming export-led $1 trillion by 2035: Report
The report by Arthur D Little paints an ambitious picture for the Indian automobile sector, envisioning it as a formidable export-oriented industry with a market value of USD 1 trillion by 2035. This vision is firmly grounded in a strategic roadmap that emphasizes several critical factors. Firstly, it underscores the importance of manufacturing excellence, where the sector needs to enhance production processes, quality standards, and supply chain efficiency to cater to both domestic and international demands.
Furthermore, innovation is seen as a driving force, pushing Indian companies to invest in research and development, enabling them to create cutting-edge technologies and design vehicles that meet global standards, particularly in areas like electric vehicles and autonomous driving. Alongside this, becoming a technology leader is crucial, with a focus on advanced technologies such as electric vehicles, connectivity, and artificial intelligence.
To attract international customers and partners, India should position itself as a global hub for design, development, and production, aligning products with international preferences and complying with global standards. This vision also highlights the importance of substantial investments, collaboration with global industry leaders, and a commitment to sustainability as the world moves towards eco-friendly transportation solutions.
In essence, the report foresees India’s automobile sector evolving into a prominent global player, driven by a multifaceted approach that encompasses innovation, technology leadership, and a keen eye on international markets. If executed effectively, this transformation could position India as a significant force in the global automotive industry by 2035.
In order to realize the vision of the Indian automobile sector becoming a USD 1 trillion export-oriented industry by 2035, it’s imperative that all stakeholders within the industry embark on a journey of capability enhancement, according to insights from Barnik Chitran Maitra, Managing Partner (India & South Asia) at Arthur D Little. This transformation calls for the development of reliable and globally competitive manufacturing capabilities across the industry’s landscape.
Furthermore, India’s automotive sector possesses inherent strengths in automotive software and Engineering Research and Development (ER&D). These strengths can be effectively leveraged by aligning solutions with emerging trends such as zonal architecture and Advanced Driver Assistance Systems (ADAS). By doing so, India has the potential to emerge as a leader in automotive innovation. Moreover, the country’s thriving and well-funded startup ecosystem provides fertile ground for innovation and the development of cutting-edge solutions that align with the future of the automotive industry.
In essence, this vision for the Indian automobile sector transcends mere production and export; it encompasses a comprehensive strategy of capability enhancement, innovation, and alignment with global trends. India’s potential as a significant player in the global automotive landscape rests not only on its manufacturing prowess but also on its ability to offer innovative solutions and stay ahead of the curve in technological advancements.
The increasing pace of innovation within India’s local automotive ecosystem signals a significant shift in the dynamics of disruption. If harnessed effectively, this wave of innovation has the potential to propel India to a position of global leadership within the automotive industry. This transformation is not limited to incremental changes; it encompasses a comprehensive shift that can redefine the industry on a global scale.
The global automotive Research and Development (R&D) and software market is projected to undergo a substantial three-fold growth by 2030, reaching a value of USD 400 billion. India, with its reputation as the software hub of the world and a preferred offshore destination for such activities, is ideally positioned to leverage this growth. It can play a pivotal role in shaping the future of the automotive industry by contributing to technological advancements and innovation.
However, to unlock the true potential of India’s automotive sector and realize the vision of becoming a USD 1 trillion global automotive hub by 2035, it is essential to foster a robust dialogue and concerted actions among all stakeholders. This collaborative effort should encompass not only the industry players but also the government. Together, these stakeholders can drive investments, facilitate collaboration, and pave the way for India to emerge as a global automotive powerhouse. The future of India’s automotive industry hinges on proactive and strategic measures that align with the evolving landscape of technology and innovation.
