The Government of India’s auto policy seeks to establish a globally competitive Automotive Industry in India and to double its contribution to the economy by 2010.
Major policy objectives include:
Exalt the sector as a lever of industrial growth and employment and to achieve a high degree of value addition in the country.
Promote a globally competitive automotive industry and emerge as a global source for auto components.
Establish an international hub for manufacturing small, affordable Passenger Cars and a key center manufacturing Tractors and Two Wheelers in the world.
Ensure a balanced transition to open trade at a minimal risk to the Indian economy and local industry.
Conduce incessant modernization of the industry and facilitate indigenous design, research and development.
Steer India’s software industry into automotive technology.
Assist development of vehicles propelled by alternate energy sources.
Develop domestic safety and environmental standards at par with international standards.