Contents

1 automotive MISSION PLAN : 2016-26 (A Curtain Raiser). Contents Contents 1. What is AMP 2026? 03. 2. Objectives of AMP 2026 03. 3. Achievements and Learnings of automotive Mission Plan 2006-16 04. 4. Vision and targets 05. 5. Interventions 06. 6. Conclusion 10. automotive MISSION PLAN : 2016-26 (A Curtain Raiser). 1. What is AMP 2026? its manufacturing sector. Around 13% of the excise duty collection of the Government can be The automotive Mission Plan 2016-26 (AMP attributed to the Indian automotive industry. The 2026) is the collective vision of Government of automotive industry can be termed as the mother India (Government) and the Indian automotive of the manufacturing sector in an economy, Industry on where the Vehicles, Auto- as its fortunes directly impact the fortunes of components, and Tractor industries should reach several related manufacturing industries ( over the next ten years in terms of size, contribution Iron & Steel, Aluminium, Lead, Rubber, Plastics, to India's development, global footprint, Glass, Machine tools, Moulds & dies, Chemicals, technological maturity, competitiveness, and and Capital Goods) and several in the Services institutional structure and capabilities.

2 AMP sector ( Logistics, Banking, Insurance, Sales 2026 also seeks to define the trajectory of & distribution, Service & repair, and Fuels). The evolution of the automotive ecosystem in India rapid growth of the Indian automotive industry including the glide path of specific regulations will provide a strong fillip to the Micro & Small and policies that govern research, design, and Medium industries of the country across technology, testing, manufacturing, import/ multiple sectors, the development of which is export, sale, use, repair, and recycling of one of Government's principal objectives. automotive vehicles, components and services. AMP 2026 is a document that is aimed at multiple b) AMP 2026 aims to make the Indian automotive stakeholders in India and overseas, and seeks to Industry a significant contributor to the Skill communicate the Government and industry's India programme and make it one of the largest intent and objectives pertaining to the Indian job creating engines in the Indian economy: The automotive industry, comprising the automotive potential for incremental number of both direct vehicle manufacturers, the auto-component and indirect jobs to be created by the Indian manufacturers and tractor manufacturers who automotive industry over the next decade is operate in India.

3 Nearly 65 million. This is over and above the additional 25 million jobs created in the previous The comprehensive list of stakeholders indicates decade. The automotive industry has numerous the ubiquitous and fast expanding footprint backward and forward linkages with over two of automobiles in our society and the diverse dozen industries across manufacturing and manner in which automotive products and service sectors, across rural and urban India, services interact with different kinds of persons, and across the formal and informal sectors of groups, institutions, and organisations. Each the economy. Most of the jobs in the Indian stakeholder has a different perspective (read automotive industry involve acquiring specialist advantage, cost, benefit, and expectation) of the skills, and confer to the person sufficient technical automotive sector, and therefore AMP 2026 is and soft skills to progress professionally within an attempt to provide a same page view to and outside the automotive sector.

4 In addition all of them in a coherent and cogent manner of to creating high skilled jobs, the industry also Government & Industry's vision and policy goals provides employment opportunity to a large for the automotive sector. number of semi-skilled and low skilled workers. 2. Objectives of AMP 2026 c) AMP 2026 seeks enhancing universal mobility: The focus of AMP 2026 is to promote safe, The core objectives of AMP2026 can be efficient and comfortable mobility for every person summarised under five themes as follows: in the country, with an eye on environmental protection and affordability through both public a) AMP 2026 aims to propel the Indian automotive and personal transport options. The objective is industry to be the engine of the Make in India . to provide a choice to the consumer to access programme, as it is amongst the foremost multiple options for mobility. AMP 2026 aims drivers of the Manufacturing sector: Over the to enhance mobility of all people while also next decade, the Indian automotive sector is addressing the need to minimize the negative likely to contribute in excess of 12% of the externalities arising from the use of automobiles, country's GDP and comprise more than 40% of such as, congestion, air pollution, global 3.

5 automotive MISSION PLAN : 2016-26 (A Curtain Raiser). warming, and road accidents. AMP 2026 seeks predictable policy regime that governs it in a stable to achieve a healthy balance between the human and sustainable manner. World over, no large and aspiration of personal transport and efficiency of economically advanced nation has succeeded in public transport in India. Over the years, public attaining its developed status without nurturing transport in India has been of relatively poor its automotive industry. Given the widespread quality and reliability and has, by and large, and differential impact of the Auto sector on become the refuge of persons who cannot afford different stakeholders, and the vibrancy of India's personal transport. Given the massive increase democracy, regulations and policies that govern in congestion (and the negative consequences the Auto sector are subject to pulls and pressures thereof) that will likely result in urban India of several interest groups.

6 Therefore, to ensure if there is unbridled, widespread growth in a fair and predictable governing environment the usage of personal transport vehicles on a for the Indian automotive industry, AMP 2026. scale similar to that in developed nations, it is spells out the Government's views on the path imperative that adequate attention is devoted to of evolution of key policies for the Auto sector, policy formulation, planning, and development so that all regulations impacting the industry are of quality public transportation uniformly across formulated comprehensively in scope and scale India. to be implemented harmoniously across the nation, including at the Centre and the States. d) AMP 2026 seeks to increase net exports of the Indian automotive industry several fold: AMP 3. Achievements and Learnings of 2026 recognises that the Indian automotive automotive Mission Plan 2006-16. industry (both vehicles and auto components).

7 Has the potential to scale up exports to the As we come to the end of the first automotive extent of 35-40% of its overall output over the Mission Plan (AMP 2006-2016, or AMP 2016 in next ten years and become one of the major short), many of its objectives have been met or automotive export hubs of the world. In line will come close to being fulfilled by the end of its with this, AMP 2026 makes several prescriptions period. Some of the key achievements are: to improve competitiveness, technological i) The automotive industry has achieved the target advancement, infrastructure investment, and of incremental employment creation of 25 million branding. On the flip side, the import intensity jobs over the past decade. of automobiles is likely to increase in the coming years on account of the increasing use ii) India has attracted significant quantum of of electronics and the enhancement in the value investments from global and local OEMs as well of design and engineering in making of vehicles as component manufacturers, exceeding the and components.

8 At present, India is deficient target of ` 1,57,500 crore. in skills and capabilities in both these areas, namely auto-electronics and design/engineering. iii) While, the cumulative domestic sales volume AMP 2026 seeks to increase the share of local targets of commercial vehicles, passenger vehicles, manufacture of vehicles and components, in and tractors have been achieved, components, particular, automotive electronics, light-weighting two and three wheelers have fallen short of their materials, moulds & dies, and machinery, which targets. In comparison to the base case scenario will save the country substantial foreign exchange of ` 5,49,000 crore, the industry is on course to and be a shot in the arm for the Make in India achieve this target by the end of FY16. In the programme as well. AMP 2026 also aims to case of exports, by end of FY16, automobiles will increase the quantum of indigenously carried out have exceeded the target of ` 54,000 crore while research, design, engineering and manufacturing auto component segment would witness a major in both automotive vehicles and components.

9 Shortfall from the ` 1,20,000 crore targeted. Considering that almost five years during the e) Comprehensive and stable policy dispensation past decade had recessionary characteristics, required: Given the distinctive contribution of the including the global financial crisis of 2008, the Indian automotive Industry to the socio-economic performance of the Indian automotive industry development of the country, it is imperative that over AMP2016 has been quite commendable. the industry is subjected to a comprehensive and 4. automotive MISSION PLAN : 2016-26 (A Curtain Raiser). iv) The emergence of India as a global hub for policies impacting the manufacture and use of small cars is a significant accomplishment that automotive products in India. The intention AMP 2016 had envisaged. As of FY15, around here is to avoid conflicting policies or knee-jerk 31% of the global sale of small cars are those regulatory responses to unforeseen situations manufactured in India.

10 Besides small cars, India has that could have a deleterious impact on the also emerged as a world leader in the manufacture smooth development of the Indian automotive of: (i) diesel and petrol engines of small capacity; industry. (ii) commuter two wheelers and three wheelers;. (iii) low powered tractors; (iv) engine and 4. Vision and targets transmission related auto components, especially Vision statement AMP 2026: Vision 3/12/65 : those that require complex machining, grinding, By 2026, the Indian automotive industry forging etc., and possibly assembly operations;. will be among the top three of the world in and (v) components that require relatively lower engineering, manufacture and export of vehicles scale and complexities in manufacture. and auto components, and will encompass There are two lessons from the first Mission safe, efficient and environment friendly Document (AMP 2016) that AMP 2026 seeks to conditions for affordable mobility of people and incorporate.