Prime Minister Narendra Modi on Thursday called on the automobile sector to achieve self-sufficiency, while also stressing on the need to expedite innovations for greener alternatives.
The automobile industry, on its part, has set a target of becoming near 100% self-reliant in the entire manufacturing value chain by 2047, while also becoming one of the two largest producers in every segment of automobiles in the world. The industry, however, added that a long-term regulatory roadmap is among the key enablers that can be helpful in better planning of investments, technologies and product development.
“Our government has adopted an enabling approach towards creating a global manufacturing hub by encouraging manufacturers to ‘Make in India’. ‘Amrit Kaal’ is an opportunity to achieve self-sufficiency in every sector and the automobile sector is no exception,” the Prime Minister said in his message to the industry at the 62nd Annual Convention of the Society of Indian Automobile Manufacturers (SIAM).
Mr. Modi added that it’s the need of the hour that the automobile industry’s innovation for greener alternatives attains a new momentum to ensure the protection and conservation of environment as well as help in making India self-reliant.
Speaking at the event, SIAM president Kenichi Ayukawa said that, currently, the industry is going through a unique phase. “Some segments have started to see recovery after the pandemic, while a few are still struggling. For example, mass segments like entry-level cars and two-wheelers are facing huge reduction in demand owing to significant increase in the acquisition cost.”
For segments with good demand, there are supply side challenges, mainly the semiconductor shortage, he said, adding that over the next 25 years, the auto industry will develop multiple alternative technologies or energy options that are closest to ‘Carbon Net Zero’ and suitable for the Indian context.
Cost to quality shift
Speaking at a separate session of the convention, Union Minister Road Transport and Highways Nitin Gadkari said the automobile sector should focus on quality and not costs.
The comments come amid renewed focus on road safety following the death of business magnate Cyrus Mistry in a road accident.
Mr. Gadkari asked automobile manufacturers to look at offering discounts to new buyers who have scrapped their old vehicle, adding that the government did not want to make it mandatory.
He said that he was also pitching for a reduction in GST on new vehicles purchased after scrapping old vehicles. “Yesterday, I had a meeting with Steel Minister Jyotiraditya Scindia. Again both of us are going to meet the Finance Minister and request her to give GST concession for new purchase of vehicles against scrapping of old ones,” the Minister said.
