Auto Industry reincarnation: SIAM approaches ministers of newly formed government

To discuss the challenges faced by Indian Automobile Industry, Mr. Vikram Kirloskar, President SIAM along with the other senior members has called on the Ministers of Commerce, Road Transport, Environment and Heavy Industries, on June 16 & 17, 2014. The Indian auto industry is witnessing slow growth besides several other issues, so to sort out the challenges senior members of SIAM team met the concerning ministers. 

According to the statement of SIAM, “The objective of these meetings was to apprise the Ministers of the current status and challenges being faced by the industry. The SIAM delegation also highlighted the potential of the industry to contribute to the growth of manufacturing, exports as well as to the economy as a whole, including rural sector.”

In order to take the auto industry to new heights, many suggestions have been made including the continuation of the reduced excise duty on vehicles, new foreign trade policy, enhanced export incentives for vehicles, streamlined and free inter-state movement of vehicles, promotion of electric and hybrid vehicles and prevention of overloading, encouraging alternative fuel vehicles, enhancing road safety, Emission and Fuel Efficiency norms, Fleet Modernisation and Scrappage policy, etc.

Mr. Kirloskar in an official statement said, ''We were very encouraged by the response of all the Ministers and feel confident that Government would take a clear and holistic view of the automotive industry and work towards creating an enabling stable policy framework to ensure sustained growth of the auto industry."

The representatives of SIAM are yet to meet the new Finance Minister Arun Jaitley, to discuss the key role of auto-sector in increasing the country's economy as the auto-industry accounts for 7 per cent of the total GDP.

As per the figures available, auto-industry churned a total turnover of Rs 4,00,000 crore last year while a total of Rs. 70,000 crore has been invested in the industry in the last five years.

In India, factors such as slow economic growth, depreciating value of Indian currency and increasing rate of fuel prices have caused a slump in the auto sales. For the fiscal year 2013-14, Indian auto-industry witnessed a fall of 4.65 per cent as the manufacturers retailed 17,86,899 units compared to 18,74,055 units in the previous fiscal. Moreover, in the 2012-13, for the first time in a decade, car sales fell to 6.69 per cent. Thus, the auto industry is betting high on such meetings and are optimistic about the upcoming 2014-15 budget.