The automobile industry needs to grow by 15-16 per cent every year till 2016 to achieve the ten-year target of the automotive mission plan formulated in 2006, incoming president of the society of Indian automobile manufacturers (Siam) president, Pawan Goenka has said.

Goenka, who took over the reigns from Ravi Kant (managing director at Tata Motors) on Friday, said that the flat growth in the automotive industry last year is just a small speed breaker in the industry’s path of achieving a turnover of $145 billion in 2016. Goenka is also president automotive for Mahindra & Mahindra.

Siam’s automotive mission plan aims at doubling contribution of the auto sector to India’s GDP in ten years between 2006 to 2016. Goenka said the industry was pegged at an annual $36 billion at the time of formulation of the plan, while it now stands at $45 billion.

“Indian automobile ma­nufacturers should become globally competitive by bu­ilding a brand image with an identities of their own. (Auto) firms have become leaner and more efficient after the downturn, which is a positive sign for our lo­ng term goal,” Goenka said.

He said that cheaper automobile financing and easing of commodity prices have helped automobile companies show upward trends in growth in the first four months of this financial year.

However, “It seems unlikely that the overall industry, except two-wheelers, would grow by double digits this year. There are signs of recovery in the commercial vehicles segment and we should see them make a comeback by year end,” Goenka said.