A collaborative vision of the Government of India and the Indian Automotive Industry, the Automotive Mission Plan 2016-2026 (AMP 2026) , was unveiled in September 2015 at the 55th annual convention of the Society of Indian Automobile Manufacturers’ Association. Taking up from AMP 2016, AMP 2026’s focus is on drawing a road map for where the industry should be by 2026. It seeks to outline the path of policies and regulations governing the various aspects of the automotive industry so as to take India to the pole position in the Global Auto Industry.

 

The main goals of AMP 2026

• Alignment with Governmental Initiatives – Automotive industry needs to become the ‘engine’ of #MakeInIndia program. Envisaged to contribute more than 12% of the country’s GDP, it is expected to comprise 40% of the manufacturing sector, creating 65 million new jobs. The automotive industry, with its links to other industries in the manufacturing and services sectors, is expected to become a key player in the #SkillIndia programme too.
• Turn India into an Export Hub – Make India one of the top three countries in the world in engineering, manufacture and export of automobiles and auto components. Increase exports to 35-40% of the overall output, and make India a major automotive export hub. Address deficiencies in skills and capabilities in areas of auto electronics, engineering and design, so as to increase share of local components, reducing the dependency on imports.
• Industry Growth – Growth of 3.5 to 4 times envisaged in the industry, propelling output from Rs 4.64 lakh crores in 2015 to Rs 16.16 lakh crores (average GDP growth of 5.8 %) – Rs 18.89 crores in 2026 (optimistic 7.8 % growth in GDP). Auto components to grow to Rs 5.94 lakh crores –Rs 7.32 lakh crores during the same period.

• Balance between Public and Private Transport – Achieve a healthy balance between need of personal transport and efficiency of public transport. Drive this uniformly across the country, by planning, developing and implementing suitable policies. Ensure that regulations impacting the industry are formulated comprehensively and implemented in coordination by all arms of the government, including the state and local governments.
• Uniform Fuels and Emissions Norms – Deploy a standard fuels and emissions norms simultaneously across the country as against the current practise of phased manner. Ensure safety regulations and features as per global standards are implemented and followed. Implementation of a comprehensive inspection and certification regime for vehicle fitness is one of the most important features of AMP 2026. For all passenger vehicles it is proposed that BS-V norms be in place by 2019 and BS-VI by 2023. End of life policy is set to be implemented for all vehicles and components.
• Financial and Trade Policies – AMP 2026 also maps inputs and suggestions for trade, fiscal and taxation policies conducive to the sector, making it competitive. It is also going to look at automotive-specific infrastructure such as automated tolls, dedicated berthing/parking slots at ports, flexi-deck auto wagons, dedicated freight corridors etc.

It is important to remember that AMP 2026 is just a road map. Achieving the plan and reaching the destination will require focused joint efforts of the Government and Indian automotive industry.