Auto Industry to contribute 10% in GDP by 2016

The Indian automotive sector which has registered a record growth in last month, will be generating output of $145 billion by year 2016, according to The Automotive Mission Plan 2006-16. The mission plan also attributes that automotive sector will be contributing 10% of India's GDP by year 2016. In addition to this after achieving this much of growth the automotive industry will be able to provide employment to around 25 million people in the country.

If the current employment pattern remains in coming few years the Indian automobile sector will possibly need about 7 million people ( for managerial/general work). Where the skilled workers will contribute to 15.5 million, the unskilled workers will number about 2.5 million, as per the reports.

According to the Society of Indian Automobile Manufacturers (SIAM), the Indian automobile industry is going through a shift in demographics and customer loyalties with competitive domestic market and newer alliances and acquisitions. Along with sales growth the environment changes provide opportunity to  carmaker to adopt new eco-friendly technologies like hybrid and electric technologies.

To make the most of this high growth market major car manufacturers around the world trying hard to establish their manufacturing facilities and  distribution networks in India. New cars to be launched in India in this years includes Ford Figo, Volkswagen Polo, Toyota Prius (launched but not delivered yet), Toyota Etios, Skoda yeti and Tata Aria.

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