Indian auto exports to touch US$ 25 billion by next decade

At the 48th SIAM Annual Convention 2008 in New Delhi, commerce and industry minister, Kamal Nath, revealed that India's auto exports will reach US$ 25 billion and its contribution to GDP will double from its current 5 per cent to 10 per cent by the next decade. He assured all the industry players that he will provide an 'enabling policy framework' and also exhorted them to leverage their strengths and expertise for international expansion. Kamal Nath also said the government would consider incentives for exporters of cars and auto-part makers and keep policy favourable to help auto makers sustain high growth in output.He expressed his confidence in the industry as he believes India should be the preferred destination for design and manufacturing of automotive components and vehicles in the world by 2015.
The minister said; "the Indian automobile industry today is all about scale. Maruti hopes to have a capacity of 1 million cars by 2010; Hyundai is looking at 600,000 cars in another year; Toyota is talking about 200,000 cars by year end; the Nissan Renault venture is planning a capacity of 400,000 cars. GM and Honda are setting up new plants, as is Tata for its Nano." But he also pointed out that developing a supply base with emphasis on lower costs and economies of scale and technical and human capabilities, overcoming infrastructural bottlenecks, stimulating domestic demand and exploiting export and international business opportunities are the current challenges for Indian automobile industry.

source: http://www.wheelsunplugged.com/ViewNews.aspx?newsid=1262