Table of ContentsSummaryIntroductionGovernment InitiativesMake in IndiaGoods and Services TaxNEMMP (National Electric Mobility Mission Plan) 2020Automotive Mission Plan 2026Emission Standards in IndiaTrends Futures in the Passenger Car IndustryNational Automobile Testing and R&D Infrastructure (NATRIC) Project.ConclusionSummaryThe Indian passenger car industry has witnessed various technological advancements over the years, the chronological milestones being the introduction of chain assembly, electric starts, four-wheel brakes, power steering, airbags, navigation and today's modern electric cars. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original EssayToday, Indian automobile industry is witnessing rapid change with changing lifestyles, improvement economic and technological, environmental awareness, etc. Government initiatives like Make in India, NEMMP 2020 and Automotive Mission Plan 2026 are steps towards the same goal. The government is also becoming environment conscious and has banned BS3 compliant vehicles. This encourages automakers to come up with technologies like an electric car, self-driving cars, BS4 emission compliant vehicles, etc. The Indian automobile industry is the second fastest growing industry in the world with a growth rate of 9.23%. A booming industry has attracted many foreign players to the Indian market. Additionally, the recent implementation of GST helps foreign players to better allocate and segment the market. Thus, to cope with recent consumer trends and demands, domestic and foreign players are busy improving their technologies and inspiring each other. which causes rapid growth of the Indian passenger car industry.IntroductionThe Indian automobile industry is one of the largest in the world and one of the most important factors in the growth of the Indian economy. It represents 7.1% of the country's GDP. Around 25 million automobiles were produced in India in FY 2017. The production volume grew at a CAGR of 5.56% between FY 2012 and 2017. The overall passenger car segment accounts for 13%. of the market share of overall production. India is also a major exporter of automobiles, growing at 1.91% last year. The overall passenger car industry also recorded a whopping growth of 5.24%. Apart from contributing to economic growth, the automobile sector is also a huge source of employment in India. Although the passenger car industry is booming and contributes greatly to GDP and exports, the government must continue to control this growth in relation to the well-being of society as a whole. Today we are facing many global problems such as global warming, depletion of non-renewable resources which are directly related to this industry. If these issues are not addressed, they will not only affect public health but may also lead to a slowdown in market growth with an increase in the cost of fuel. So, to counter these problems, the Indian government has started developing policies to ban vehicles that do not meet the required environmental standards (e.g. banning BS3 emission engines) and thus forcing automobile manufacturers toinnovate better technologies. He has also launched many initiatives aimed at making India a global leader in green energy automobile manufacturer.Government InitiativesMake in IndiaMake in India is an initiative launched by the Government of India to make India the center global manufacturer. Through Make in India, the government intends to encourage domestic and multinational companies to manufacture their products in India. The Make in India campaign helped India improve the World Bank's ease of doing business score from 142 in 2015 to 130 in 2016. With this improved environment for manufacturers, leading global automakers like ISUZU Motors , Tata Motors, FORD Motor and Suzuki Motor have invested heavily in setting up greenfield manufacturing units and new assembly lines thereby boosting car manufacturing in India. Before the Make in India campaign, the Indian passenger car industry was suffering from a negative growth rate of 6.06% in the financial year 2013-14. After the launch of this campaign in 2014, the growth rate jumped to 3.90% in the financial year 2014-15 (EY, 2016). Thanks to the rise of manufacturing in India, the passenger car industry has become the second fastest growing industry in the world. India is becoming a manufacturing hub for companies like Ford, General Motors, Nissan and Volkswagen. These companies export more cars than they sell in India. For example, Nissan exported 111,612 cars in the financial year 2015-16 and sold only 30,389 cars in India. Among these companies, Ford, General Motors and Volkswagen recorded a positive growth rate of 35.86%, 1621.00%, 16.92% during the financial year 2015-16. These positive figures were possible thanks to the impetus given by the 'Make in India' campaign to the passenger car industry. Goods and Services TaxGST is an indirect tax introduced in India on July 1, 2017. It replaced several cascading taxes levied by state governments. The passenger car industry was greatly affected by the mere announcement of this policy. He said not all closing stocks of finished goods and inputs could be transferred to the GST regime with all the tax benefits. This has seen major players giving huge discounts on their cars and calling it a pre-GST discount. However, due to mixed consumer sentiments on the real implication of GST, the passenger car sector saw a decline in sales with major players like Tata falling 10% and M7M seeing a 3% drop in its sales in the utility vehicle segment. After GST inaction, mid-sized cars which account for almost 25-30% of the market will witness positive growth as the tax has been reduced by 9% for them. GST will also be a promotional factor for foreign players. Initially, due to the presence of interstate tax which varied from state to state, the tax (ces) levied on the purchase of raw materials for manufacturing and transportation of finished products was a heavy burden. With GST, this tax has been removed and free interstate transportation of goods is now allowed. (Philip.L, Thakkar.k, 2017)NEMMP (National Electric Mobility Mission Plan) 2020The NEMMP 2020 plan was launched on January 9, 2013 with the vision of promoting affordable, reliable and efficient xEVs (hybrid and electric vehicles) meeting the needs of performance and consumer prices. expectations. It is a government-industry collaboration for the promotion and development of manufacturing capabilities, infrastructure,Indigenous consumer and technology awareness. It aims to help India become a leader and achieve global leadership in xEV manufacturing and contribute to national fuel security. (Press Information Bureau, 2015) The adoption of electric mobility is the need of the hour with the rapid depletion of fossil fuels and rising energy costs. , harmful effects of transport on the environment, etc. Technological developments to achieve the set goal include advancements in downsizing of motors, development of motors using non-rare earth materials, battery management system, stability, performance , smart charging, etc. identified “India’s right to win areas of R&D” in which India has a greater chance of success [Exhibit 2]. This is measured based on current capabilities, required investments and the intensity of global competition. Currently, Indian equipment manufacturers Mahindra (10 patents), TVS (5 to 7 patents) and TATA (1 patent) have managed to offer successful R&D. in areas related to battery management systems, electric motors and electronics. Current obstacles to the project include high development costs, consumer acceptance of xEVs and lack of charging infrastructure. Currently, the NEMMP is expected to save 9,500 million liters of crude oil equivalent, or Rs. 1,000,000. 62,000 Cr. savings. This initiative by the government will reduce the country's fuel dependence on imports and will also help reduce GHG emissions in India. The FAME program was launched under the NEMMP project in the Union Budget for 2015-16 with an initial outlay of INR 75 crore. So far, to support the cause, only Mahindra has emerged as a major player with 2 models Mahindra e2oPlus and Mahindra. e-Verito with 80 charging stations spread across 10 cities in India. Tata Power Distribution Lt. has announced an investment of $100 billion to install 1,000 charging stations across Delhi. Automotive Mission Plan 2026 The Government of India and SIAM (Society of Indian Automobile Manufacturers) have drawn up a roadmap for the automobile sector for the year 2016-2026. GPA 2026 envisions the Indian automobile industry to grow four-fold from $74 billion in 2015 to $260-300 billion in 2026. The passenger car industry contributes 42% of the total revenue generated by the automotive industry. Therefore, the passenger car industry will be the driving factor for the growth envisaged in GPA 2026. Emission Standards in India Bharat Stage Emission Standards were introduced by the Government of India in 2000 in the purpose of regulating engine power. Bharat Stage IV emission standards have been in force since 2010. They were only implemented in certain cities in India like Agra, New Delhi, Mumbai, etc. The sale and registration of Bharat Stage III cars was banned from April 1, 2016. The decision came from the Supreme Court of India, but it left Indian automakers with a huge pile of unsold BS3 cars . The total number of BS3 cars owned by the manufacturers stood at 16,198, which they had to sell at heavily discounted prices. Mahindra, the third largest automobile manufacturer in India, sold its Bolero car with discounts of up to Rs 100,000 [Exhibit 5]. The Indian government has announced that it will skip BS-V norms and adopt BS-VI norms by 2020. This is a huge task for automakers as there is a lot to do to pass.