Auto companies preparing to invest one lakh crore, preparations are being made to enter new segments including EV

All the economic research agencies in the country and abroad have told that India will remain a big center of global economic activities for the next few years. The growth rate of the Indian economy will be the fastest. The middle class will expand rapidly and the purchasing power of the people will also increase.
The impact of these possibilities and assessments is clearly visible in the country's automobile sector as well. This image of the future has made even the leading automobile companies focus on India. Leading auto companies are working on investment plans of more than one lakh crore rupees in India.
Carmakers like Maruti Suzuki, Hyundai, Tata Motors, and top two-wheeler companies like Bajaj Auto, Honda, and Hero MotoCorp are trying to fix their weak spots in the rapidly changing automobile market in the country. These companies are going to enter new segments. It is obvious that its effect will be seen from MSME to employment. The National Family Health Survey last year reported that only eight percent of households in India owned a car. In the year 1998-99, only 1.8 percent of the households had a car.
In the year 2005-06, this figure was 2.8 percent. With the fast economic growth rate, the number of families owning a car has increased. Now that the Indian economy is being talked about achieving a continuous 7-8 percent growth rate, car companies are seeing the possibility of increasing the sales of cars within the country. Therefore, every car company is preparing to enter such a segment as well, where it was not there till now.
Tata Motors is working on a plan to launch 10 new electric cars in the next five years. About 30 thousand crore rupees have to be invested in this. Out of this, 15 thousand crore rupees will be spent till the year 2027. Apart from this, the company is working on an ambitious plan to manufacture the necessary equipment and spare parts for its vehicles in India. The way the Tata group is moving ahead in chip manufacturing, the necessary chip supply to Tata Motors will also be done from its own group.
The country's largest carmaker Maruti Suzuki is finalizing plans to invest $5.5 billion (about Rs 44,000 crore) in India by 2030. In August 2022, the company started the construction work of two new manufacturing plants. There is a possibility of investment of Rs 30 thousand crore on these.
Tarun Garg, Chief Operating Officer, of Hyundai Motor India, says that the way India is emerging as a leading country in technology in the world, its impact will also be visible in the automobile sector here. Now a common Indian is not ready to compromise with products and services. Keeping this thing in the center, every company will have to make its strategy.
Hyundai has recently announced a new investment of Rs 20,000 crore in the electric vehicles sector in India. Apart from this, Mahindra & Mahindra is preparing to invest Rs 8,000 crore (in three years), MG Motor Rs 5,000 crore, and Kia India is also preparing to invest Rs 2,000 crore.