India’s auto industry is a key export for China, the world’s largest automaker.
And the Model T is no exception.
With the model year of 2019 hitting the market, the auto industry in India has witnessed a sharp upturn in the volume of cars sold.
The industry is now a billion-dollar industry with a turnover of about Rs 3,000 crore.
India’s Auto and Industrial Exporters Association (AIIA) and the Auto Industry Federation of India (AIFI) have released an assessment report on India’s Model T auto industry, which provides a comprehensive picture of the Indian auto industry.
The AIIA has identified some key areas of improvement and recommended to the government and industry to focus on making the Model Ts more competitive, with a view to the introduction of a model that can rival the global models like the Mercedes-Benz C-Class, BMW 5 Series, and Jaguar XE.
The report also noted that the auto sector has been hit hard by the Indian demonetisation, which has hit the Indian economy hard.
“The economic impact of the demonetization has been felt in the auto market, especially the auto component and parts industry,” the report said.
“In the short term, the industry has lost Rs 7,500 crore, which was Rs 1,500 million less than the loss from December to March 2018.”
The report has recommended that the government work to increase exports of auto parts and auto components, which are used in cars.
It also suggested the government focus on the auto and auto component industry as a sector that can create jobs and raise the profile of the auto business.
“India is one of the world leaders in terms of the number of cars that are sold, but its auto and automotive industry is facing challenges,” the AIIA’s President, Dr Ramesh Jain, said.
Jain said that India is the biggest auto importer in the world, accounting for nearly 50% of the global market, and that this should be reflected in the government’s policy.
“We have to look at all sectors and think about how can we bring our auto sector into the fold,” Jain added.
The AIFI has also flagged that there is a need for the government to make the Model TS affordable for the masses.
“As the model years of 2019 and 2020 will be coming up, the government should look into introducing the Model Ti in the coming months,” AIFA President, Dinesh Dhar, said, adding that the industry should be given more time to work on its own plans.