The statement implies that the automotive industry in India has the potential to significantly increase its employment generation. If the industry operates at its full potential, it could potentially create jobs for over 35 million people by 2016.

This projection indicates a positive outlook for the industry's growth and its potential to contribute even more substantially to employment in both direct and indirect roles. Factors influencing this potential growth might include increased production capacity, expansion of the automotive ecosystem, and the development of ancillary industries and services related to the automotive sector.

However, it's essential to note that actual outcomes may be influenced by a range of economic, regulatory, and market factors. The projection reflects an optimistic scenario based on the assumption that the industry realizes its full potential in terms of production and economic contribution.