TEAM 24

AUTOMOBILE SECTOR

MEGHANA C S
SIREESHA K ANAND
Launched by the Prime Minister of India, Mr. Narendra Modi on
25th September 2014.

Swadeshi movement that covers 25 sectors.

By 2013, the emerging markets were not performing well and
India’s growth rate has fallen to the lowest in the decade. Make in
India was a response to this.

It encourages companies to manufacture their products

in India and also increase their investment.

The main objective is job creation and skill enhancement and "to
transform India into a global design and manufacturing hub".
Company name - AMBIENTE

Product type - Electric Car

Product name - Phoenix

Price (rupees) – 14,40,000 (120 miles)

Type of company – Subsidiary

Funding by General Motors

Capital (rupees in crores) – 30

 The Automobile Industry contributes around 7.1% to India’s
GDP by volume.
 The growth of vehicles particularly the passenger vehicles is
expected to triple to 9.4 million units per annum by 2026.
 The Indian Automotive industry to be a top job creator – 65
million additional jobs by 2026.
 The government is focusing on creating charging
infrastructure and policy framework so that by 2030 more
than 30 per cent of vehicles are electric vehicles.
 GOI’s vision is to see 6 million electric and hybrid vehicles
in India by 2020.
Source of funds – General Motors
Capital Required (rupees in crores) – 30
Budget allocation (rupees in crores)

Production 12
R&D 1.5
Expenses for running business 3

Promotion 2

Working capital required (rupees in crores) - 18

 The central government (Authority) will has the power to order a
manufacturer to recall vehicles of a particular model if there is harm to
the environment, passengers or road users
 The Narendra Modi government, on April 13, tweaked the licensing
policy for EV charging stations, clearing out a major infrastructure
hurdle that had held back the industry.
 GST tax slab for Evs is 12%.
 Under Rule 126 of the CMVR, various test agencies are established to
test and certify the vehicles based on the safety standards and emission
norms prescribed by the Ministry.
 Every manufacturer of motor vehicle has to submit a prototype of the
vehicle to be manufactured to any of the test agencies.
 100% Foreign Direct investment (FDI) is allowed under the

automatic route in the auto sector, subject to all the applicable

regulations and laws.

 Manufacturing and imports in this sector are exempt from

licensing and approvals.

 The encouragement of R&D by offering rebates on R&D

expenditure.

 By 2027, 4-wheel EV sales may exceed 4-wheel ICE sales

(economic times)