Domestic auto industry gears up for growth, driven by EV push and job boom: GlobalData report
According to data analytics firm GlobalData report, about 24.7 per cent of these cities are likely to experience strong growth in the automotive sector, while 49.5 per cent are expected to see moderate growth.
)
07:34 PM IST
India's automotive sector is expected to witness positive growth in the coming year, driven by supportive government policies and a growing job market, according to a report.
The primary reason behind the growth is the impact of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme, which has been in effect since April 2019.
This policy encourages states to offer financial and non-financial incentives to boost the adoption of electric vehicles (EVs), contributing to the sector's expansion.
According to data analytics firm GlobalData report, about 24.7 per cent of these cities are likely to experience strong growth in the automotive sector, while 49.5 per cent are expected to see moderate growth.
Cities like Mumbai, Hyderabad, and Pune are among those projected to thrive. On the other hand, about 7.5 per cent of cities may see stagnant growth, while 9.7 per cent and 15.5 per cent could experience moderate and pessimistic declines, respectively.
Chandigarh is one of the cities expected to face challenges in automotive growth. Hyderabad and Mumbai, in particular, are well-positioned for expansion due to their growing service sector and job opportunities.
Hyderabad has seen a surge in employment, supported by government initiatives promoting start-ups and entrepreneurship.
The state government's focus on information technology (IT) and IT-enabled services (ITES) has played a crucial role in job creation.
Additionally, continuous improvements in infrastructure, including roads, transportation, and power supply, have made the city attractive for businesses and workers.
The survey, conducted across 31 major cities, found that the increase in the workforce has, in turn, driven demand in the automotive sector.
"While the overall growth of the automotive sector is promising, regional dynamics greatly influence the trajectory of the market," Madhuchhanda Palit, Automotive Analyst at GlobalData, said.
She added that factors such as advancements in the service sector, the availability of job opportunities, industrialisation, and state government initiatives play pivotal roles in shaping the growth of the sector across different regions.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
)
)
)
)
)
)
)
)
)
)
