10. ECONOMIC ASPECTS OF PREFERRED OPTIONS

SHORT TERM ASPECTS

Initially at the nodal agencies level, an investment of Rs. 14 to 15 crore will be necessary for upgrading testing facilities, training personnel and for prototypes etc. Evolving joint ventures amongst agencies like MOST, DOE, automobile manufacturers, Ministry of Finance and R & D establishments.

Creating social awareness about the need for environment friendly vehicle rather than stressing fuel efficiency and lower maintenance. The latter part has reasonably come to stay as a well accepted feature. As it is known that ‘Automotive Electronics’ on its own cannot be justified as 20% increase in automobile cost leads to just 5-7% saving in fuel.

It is the end-customer who has to be convinced rather than any other agency as the automobile user will be paying for automotive electronics. It is he, who will be paying to reduce exhaust emission leading to cleaner air in towns.

LONG TERM ASPECTS

The adoption of ‘Automotive Electronics’ will create new industrial opportunities in this field and by the beginning of 21st century, it will command turnover of Rs. 3500 crore & above. It will generate direct employment to 7000 to 10000 persons & indirect employment to service stations & retrofit stations etc. to more than 10,000 persons. The Govt. will stand to gain additional revenue as the automobile industry’s turnover itself will go up.

The availability of global standard vehicle will increase exports of Indian automobile.
The low emissions achieved in urban agglomerates will improve quality of life and reduce health problems due to suffocation and deterrents of emission constituents.

It will foster growth of electronics component industry in India.

11. IMPACT OF PREFERRED OPTIONS

Experience of improved features adoption has typically shown that Indian customer tends to accepts upgraded version of the product at premium.

The preferred option will have impact on electronics industry, tourism, environment & healthcare etc.

A major advantage of adopting systems like ABS will reduce accidents of HCVs & LCVs on National Highways.

Needless to mention, 5 to 7% saving in petrol & diesel consumption itself will save foreign exchange outgo of around 250 crore/y Electronics reduces emission significantly but if only seen in the perspective of fuel efficiency it may be found economical.

The technology adoption for petrol & diesel vehicles will give impetus to other vehicles with alternative fuels.

A demonstrative exercise indicates that additional capital cost of Rs. 285 crore in EEM Of 10% of total vehicle manufactured in the year 2000 will reduce annual CO emission by 37,230 tonne besides reduction of HC & NOx.

12. SPIN OFFS

The major spin off of on-board electronics will be in following sectors

• Education – New stream of specialization will emerge.
• Transport – Skills will lead to increased usage of automobile leading to better transport & communications.
• Employment generation at all stages.
• Tourism – Availability of safe cars will induce tourism.                                                                                    Back