The auto sector in India is a significant industry worth over 100 billion dollars, contributing around 8 per cent of the country’s total exports and accounting for 7.1 per cent of India’s GDP.
The Covid-19 pandemic affected the sector in the past few years, but it is now recovering and is coming back to normalcy. In this State of the Economy podcast, S Ronendra Singh talks to RC Bhargava, an auto industry veteran and chairman of Maruti Suzuki, India’s largest passenger vehicle manufacturer, to discuss the industry’s recovery and current challenges.
According to Bhargava, the growth of the auto industry in India has slowed down in the past decade, but it has now reached a level similar to four years ago. He expects the industry to grow at a rate of 5-6 per cent per year.
The conversation also touches on the issue of semiconductor shortages, which have affected the industry, the slowdown in the demand for small cars and the rise of the electric vehicle segment.
Bhargava believes that overtaking China in terms of the number of cars sold is unlikely, given the difference in population and economy. However, he acknowledged that India is a significant manufacturer of all kinds of vehicles, be it two-wheelers, passenger cars or commercial vehicles.
Bhargava is optimistic about the future of the sector and sees immense opportunities for growth in the Indian market, not only in the auto sector but across various segments.
(Host: S Ronendra Singh, Producer: V Nivedita)
About the State Of The Economy podcast
India’s economy has been hailed as the bright spot amid the general gloom that seems to have enveloped the rest of the world. But several of its sectors still stutter about even while others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.