With the capacity of sizable scale available at bargain prices, the sector will see a lot of Mergers and Acquisition (M&A) activities as bigger players with deep pockets eventually closing in on financially weak but potentially viable smaller firms.
Girish Shankar, Secretary, Ministry of Heavy Industries and Public Enterprises has said that the Government of India aims to make automobiles manufacturing the main driver of the Â´Make in IndiaÂ´ initiative, as it expects the passenger vehicles market to reach 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
As many as fifteen electric buses, based on economically viable battery technology are being developed in collaboration with Indian Space Research Organisation (ISRO). These will hit the roads in six months on a pilot basis, Road Transport and Highways Minister Nitin Gadkari said.
The government is mulling over a scheme to promote coastal shipping. According to the proposed plan, a subsidy of Rs 0.5 per tonne per km on bulk cargo, a rebate of Rs 2,000 per container for container cargo and an additional 20 per cent rebate on vessel/cargo-related charges would be offered.