The automobile industry today charted an ambitious path for itself under the Automotive Mission Plan (AMP) 2006-16 which envisages an over three-fold increase in turnover from the current $34 billion to $145 billion by 2016. The plan, prepared by the Ministry of Heavy Industries in consultation with the industry body Society for Indian Automobile Manufacturers (SIAM), was handed over to Prime Minister Manmohan Singh by heavy industries minister Santosh Mohan Dev.The plan touches an array of issues related to the industry but lays special emphasis on R&D and export performance. “The industry is poised to take on a giant leap in the coming decade. The sector will double its contribution to the country’s GDP from 5 per cent to 10 per cent. The AMP would require investments of $35-40 billion of which $13 billion have already been announced,” said Mahindra and Mahindra president Pawan Goenka. The sector will also create 25 million additional jobs in the next decade.The AMP also talks of setting up SEZs and auto parks and has sought preferential allotment of land for purpose while a host of fiscal initiatives have been recommended as possible levers for growth. The industry’s main demand on the fiscal front, however, is for the finance ministry to accept the definition of small cars according to the AMP and frame policies accordingly. In last year’s budget, the centre had doled out 8 per cent excise concession to small cars with a length of 4,000 mm which is not in consonance with AMP’s 3,800 mm. “We are in dialogue with the finance ministry and are trying to impress upon the fact that there should be unanimity in policy framework across the system,” Dev added.
