The role of the automobile industry in India's economy and progress has been remarkable says PM Modi

In the backdrop of the deep structural slowdown faced by the Indian automobile industry, Society of Indian Automobile Manufacturers (SIAM), the apex automobile industry body, hosted the 61st Annual Convention, on a virtual platform, today.

Kenichi Ayukawa,President, SIAM and MD & CEO, Maruti Suzuki India Ltd read out message by Hon’ble Prime Minister of India, Shri Narendra Modi. This is the first time that a Prime Minister shared his message on the occasion of the automobile industry's flagship event - SIAM Annual Convention.

“The role of the automobile industry in India's economy and progress has been remarkable.From contributing significantly towards manufacturing to furthering exports, from creating numerous employment opportunities to adding to the ease of living for people, the sector has been a partner in India's growth story. Even during the nation's fight against COVID-19, the sensitive and active effort of the sector is deeply valued.” Said Prime Minister Modi in his letter.

Thanking the Hon'ble Prime Minister, Ayukawa, said, "The Hon'ble Prime Minister acknowledged Automobile Industry's major role in India’s manufacturing, exports, employment and ease of living for people. As India celebrates 75 years of independence, for the next 25 years the Hon'ble Prime Minister, Shri Narendra Modi, has motivated us to work together towards, new age technology, world class manufacturing, and next generation infrastructure, to achieve, sustainable and productive growth, with quality and safety, and protect our environment, resources and raw materials."

Mr Ayukawa added, "We re-dedicate ourselves to this vision of Hon’ble Prime Minister."

To bring back industry on growth trajectory, Mr Ayukawa mentioned that focused efforts are to be made. He said, "SIAM and ACMA have together worked out a Localization Roadmap with a target of about 15-20% further localization in next 2 to 5 years. SIAM has prepared an approach paper for long term regulation roadmap that takes care of all aspects and gives clarity on future investments and the industry is working hard on New Powertrain Technologies."

At the Convention, Ayukawa thanked the Government of India for announcing the vehicle scrappage policy and the new PLI scheme.

The first plenary session, themed Enablers for Sustainable Growth of Auto Industry in India, was graced by none other than Guest of Honour Dr Mahendra Nath Pandey, Hon’ble Union Minister of Heavy Industries, Government of India. Recognizing the contribution of the Indian automobile industry to the Indian economy, Dr Pandey, said, “The Ministry is working consistently for the growth of automotive sector. He acknowledged that increased localization supported by the PLI initiatives of government would make the industry more robust. He emphasized on the need for developing EV charging infrastructure and also focus on manufacturing quality products so that Indian automobile industry is the best in the world.”

T V Narendran, President, CII & MD, Tata Steel Ltd, said, “India can still become 5 trillion dollar economy by 2025-26 if it is provided with the right kind of policy support. For Atmanirbhar Bharat to be successful, it is important that the Indian manufacturing sector is strong, and for that, the Indian auto sector plays a pivotal role. The auto sector should focus on six key areas going forward. These are, electric vehicles, circularity, urbanization, resilient Supply chain that is not affected by extreme weather and geo political issues, reap in functionality and embed sustainability.”

In his special address, Amitabh Kant, CEO, NITI Aayog, said, “The future direction for the industry is towards Shared, Connected and Electric mobility. There are four prominent growth drivers that we should focus on. Firstly, we should expand investment in R&D. Then, we should focus more on innovation in small format mobility segment, establish massive charging infrastructure across the country and provide export impetus to the industry. EV is definitely integral in every OEM’s plans.”

Expressing gratitude to the dignitaries for their presence, Vipin Sondhi, Vice President, SIAM and MD, Ashok Leyland Ltd, said, “Due to the impact of COVID 19, sales were subdued for the automobile sector, however Ministry of Heavy Industries has done a remarkable job in creating world class testing and R & D infrastructure in all the auto hubs of the country. Our mission is to take advantage of localization, PLI scheme and EV charging infrastructure. All these efforts will contribute to the Government’s initiative of Make in India and make us truly Atmanirbhar.”