The 'Make-in-India' initiative was launched in September 2014 by the Government of India to encourage multinational and national companies to manufacture their products in the country. The automobile sector has received various investment and to manufacture in India.
So how did it impact the automobile sector on the whole, here are the highlights of the 'Make-in-India' campaign in the industry:
1. The automotive sector contributed 7.1 percent to India's overall Gross Domestic Product (GDP) and contributes approximately 49 percent to the country's manufacturing GDP in FY 2015-16. Also, the industry is estimated to be of USD 93 billion, at the end of this financial year.
2. India is the 6th largest car manufacturer in the world and the largest manufacturer of tractors. Also, the country is the 2nd largest two-wheeler manufacturer, 5th largest heavy truck manufacturer, 8th largest commercial vehicle manufacturer in the world.
3. Some of the biggest investments came from ISUZU Motors with an investment of $445 million in a project in Sri City, Andhra Pradesh in April 2016 andTata Motors and Fiat Ltd. set up a joint assembly line to manufacture SUVs at the Ranjangaon unit in Pune with an investment of $280 million.
4. Other investment included Magneti Marelli, Fiat's component manufacturing arm opened a new manufacturing plant for production of robotized gearbox in October 2015. India's Force Motors opened Rs 100 crore greenfield plant in June 2016 for supplying engines and axles to Mercedes-Benz India.
5. Suzuki has initiated a greenfield project in car and powertrain manufacturing in June 2015 near Ahmedabad, Gujarat.
6. Mercedes-Benz opened its second manufacturing plant in Chakan, Maharashtra in July 2015.
7. A total of $5.5 billion Foreign Direct Investment (FDI) have come into the automobile sector from April 2014 to March 2016.
8. Overall production has increased from 2.6 percent in FY 2015-16. The industry produced a total of 23,960,940 in FY 2015-16 compared to 23,358,047 in the previous period.
9. A significant growth was seen in the total production of green vehicles - electric and hybrid - from 17,107 in FY 2014-15 to 71,909 in FY 2015-16. It is not just production, sales have increased as well, with 16513 units in FY 201-15 to 65,224 units in FY 2015-16.
10. Exports grew as well with 1.9 percent increase over the previous period of FY 2014-15 which is worth $8.8 billion.
The Make-in-India campaign is on the upward trajectory and this is bound to create a better environment for manufacturing products in India. The highlights above are the testament to the campaign and this will energise other automotive manufacturers to set up their plant in India.