| |November 202119"It is only a matter of time that we gradually emerge from the pandemic, given the fact that the Indian automotive industry is extremely resilient and has learned its lesson well from the first wave of COVID-led disruption. The automotive sector and consumer mobility industry are geared to address the mobility needs of the population, as the economy gradually opens-up. This will be done with technology as a key enabler not just for urban mobility, but also rural and semi-urban mobility," he adds.GROWTH OF THE INDIAN AUTOMOTIVE INDUSTRYThe Indian Automotive industry has soared to a great height from the 1950s when the yearly manufacturing of vehicles was limited to 40,000 only and early stages of manufacturing were limited only to three leading manufacturing companies in the country. Also, expertise in this industry was to a great extent attained by trial & error in the initial stages. Through the years, India emerged as a significant part of the global automotive industry and became the fourth largest in the Asia-Pacific region in the year 2020.In terms of progress, the growth of the Indian automotive industry has been immense, and 23 million vehicles were manufactured in the financial year 2021, according to reports. While India was the largest tractor manufacturer and second largest bus manufacturer last year, it was also the largest manufacturer of both 2-wheelers & 3-wheelers globally.MANUFACTURING OF TRANSPORT EQUIPMENTAutomotive is not only one of the core sectors of the country's economy, but to a large extent, it also serves as a bellwether for its current state. While the manufacturing of transport equipment accounts for 10-12 percent of the GVA (gross value added) within India's manufacturing sector, any decline in this area greatly hurts India's economic outcomes. Not just that, even employment is hit hard when vehicle sales fall. This is because the automotive sector offers 37 million direct and indirect jobs, while stimulating job creation in other industries.Though the automotive industry in India has faced many challenges recently which also include the devastating COVID-19 pandemic, its growth potential is however very clear. The automotive industry is expected to generate 65 million new job opportunities in the country in the next five years (by 2026) as enterprises increase their production.In spite of the ongoing challenges owing to the pandemic, the automotive industry of the country looks to be overcoming most of the challenges, and most of them are now in the rear view mirror. Furthermore, this industry is also benefitting from new tailwinds, which include the global supply-chain rebalancing, government incentives to improve & increase exports, and technology disruptions that result in white spaces. And these aforementioned developments will facilitate in creating new opportunities at all levels of the automotive value chain.Industry participants have started to observe a clear highway, where they can accelerate and go into a higher gear. Also as the industry attempts to fast-track their value-creation trajectories, they must understand a set of imperatives and enablers for the Indian automotive industry.THERE ARE THREE MAIN IMPERATIVES FOR THE INDIAN AUTOMOTIVE INDUS-TRY, WHICH INCLUDE:· The focus on domestic, international and downstream growth.· Achieving greater resilience in operations, especially the product, manufacturing, and supply-chain dimensions.· Becoming a leader by promoting disruptive trends, especially within emerging markets.The three enablers for the Indian automotive market include:· Reimagining the partnership ecosystem· Building the organization of the future· Transforming the organization through digital and analyticsThe automotive sector will undoubtedly play a significant and central role in the country's aspiration in becoming a $5 trillion economy. Furthermore, the recovery from the COVID-19 crisis has created a unique situation through which automakers can not only reinvent their industry, but also emerge stronger, both within the country and globally. In spite of the ongoing challenges owing to the pandemic, the automotive industry of the country looks to be overcoming most of the challenges, and most of them are now in the rear view mirror
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