Ever since the delicensing of the automobile sector way back in 1991 and the introduction of 100% FDI through automatic route in later years, the automobile industry in India has been witnessing constant and steady growth year-on-year, so much that today they are recognized as one of the key drivers of the Indian economy, with almost every major global auto major having a presence in India, with own manufacturing facilities.   Today India is one of the top two and three-wheeler manufacturers in the world, the second largest manufacturer of tractors and is expected to become the third largest car manufacturer in 2020 behind China and the US, if the current rate of growth continues. Reputed foreign automobile brands like Mercedes-Benz, BMW, Renault, Jaguar Land Rover, to name a few, have all elevated their productivity targets to cater to the rising demand of customers in not only India but also the whole of South Asia. Rapid localization is further helping to bring down the cost of vehicles and with more investments in the country, is bound to only help the automobile industry. As per the estimates of the Confederation of Indian Industry, the automobile industry is said to employ 85 lakhs people. With an extension in production forecasted, the automobile industry will rise to a whopping Rs 65,000 crores by mid or end of 2017. GOVERNMENT INITIATIVES: • Central Government’s ambitious ‘Make In India’ initiative to improve India’s status as a global manufacturing hub. Several new steps have been taken to increase India’s production capabilities and help create new and numerous job-opportunities. Already results can be seen with many foreign companies investing heavily in India to set-up huge production facilities, big enough to cater to not only Indian markets, but also export to foreign markets as well. • Stringent adherence by the Union Government to global fuel norms and rising demand among general public for greater fuel efficiency will compel companies to change their strategies and focus on coming up with vehicles (two and four wheelers) that caters to global fuel norms. • Central Government plans to promote eco-friendly cars and other vehicles like buses in India (CNG based vehicles, hybrid vehicles and electric vehicles). In addition, the Govt also proposes to make mandatory 5% ethanol blending in petrol. • Central Government’s Scheme for Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India. Under its National Electric Mobility Mission 2020, the plan is to encourage progressive induction of affordable and efficient electric cars and hybrid vehicles. • Central Government’s Technology Modernization Fund with focus on establishing India as an auto-manufacturing hub.eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
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