DEPARTMENT OF INDUSTRIES AND COMMERCE,
GOVERNMENT OF TELANGANA
Industry outlook, Opportunity in Telangana
India is expected to be the world's third-largest automotive market in terms of volume by 2026. The industry currently manufactures 25 mn vehicles, of which 3.5 mn are exported. India holds a strong position in the international heavy vehicles arena as it is the largest tractor manufacturer, second-largest bus manufacturer and third largest heavy trucks manufacturer in the world.
Sale of passenger vehicles has increased by 2.7%, two-wheeler by 4.86% and three-wheeler by 10.27% during 2018-19 viz-a-viz 2017-18. In April-March 2019, overall automobile exports grew by 14.5%. The overall Commercial Vehicles segment registered a growth of 17.6% in April- March 2019. The sector attracted $22.4 bn FDI during April 2000 – June 2019; accounting for 5.1% of the total FDI inflows.
All this combined with a young populace, increasing vehicle penetration, growing income and higher interests in automotive R&D is set to make India an attractive spot for investments in this sector.
Telangana has a long history of auto sector presence with the likes of Hyderabad Allwyn limited and HMT bearings. The current auto sector presence in the state is led by Mahindra group, Hyundai and MRF tyres. A factor that works in favour of Telangana to emerge as the auto hub is the shift from IC engines to Electric mobility. This requires new infrastructure altogether and Telangana is well poised to provide the same.
Telangana has been one of the early stages to understand EV adoption and has put in place many enablers for EV adoption. The government has been proactive in implementing central government schemes while also taking help from private sector to ensure creation of charging infrastructure. Electricity tariffs have been rationalized to incentivise users and charging station operators. The state is also aware that adoption of EV will create huge opportunity in manufacturing of vehicles, batteries and other components. The state has already received many investment offers from global companies to set up their units in Telangana.
- Draft EV policy submitted to government for approval – The policy will take care of the supply side, demand side and infrastructure issues related to EV ecosystem.
- Utilizations of FAME II scheme incentives.
- Policy to provide preference to Local EV manufacturers in govt procurement.
- TASK (Telangana Academy for Skill & Knowledge) – Not for profit organization created by Govt. of Telangana for providing customized industry specific training to youth at highly subsidized rates.
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