The Auto industry needs to grow 14% to meet its target of $ 5 trillion economy: Goenka
MUMBAI: Auto manufacturing needs to grow 14 percent if India is to achieve its $ 5 trillion economic target, Mahindra and Mahindra Managing Director Pawan Goenka said on Monday. India has set an ambitious target of $ 5 trillion over the next five years and 12 per cent of it is expected to be contributed by the manufacturing sector.
$ 5 trillion economic target by 2025-26 means a CAGR of 8.5 percent. In it, the manufacturing target is $ 1 trillion, which means 12 percent from manufacturing and within manufacturing, automotive plays a significant role. If manufacturing should grow 12-13 per cent of auto should grow 14 per cent, Goenka said in a panel discussion on India's economic conclusion 2019.
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He further said that the auto industry contributes 7 per cent of GDP well but compared to other major auto producing countries, all of which are double figures, the share of Indian industry is more still low.
Auto is only 4 per cent of exports to India compared to such manufacturing countries Thailand , Germany, Korea, and Japan more than 10 percent, he added.
Speaking at the event, MG Motors India President and MD Rajiv Chaba has chosen to say that if the sector needs to grow by 12-14 per cent it means it needs to do something unique that the industry has been doing for the past 10 years.
This guy is going to be a bad year but last 10 years what we did if you repeat the same thing, we will not achieve and this number will only be a number. Secondly, exports will play an important part but you have to look at domestic more as we can improve exports. Engineering services can be robust, he added.