A stable and predictable regulatory framework is important to promote long-term investments and growth in the fast growing auto industry, General Motors India President and MD Kaher Kazem said today.
He said that there is a significant reason for growth of the sector in the country and "we expect that India will probably become one of the three largest car markets by 2020."
"...we believe that a stable and predictable regulatory framework is pivotal in promoting long-term investments and growth in the automobile industry," Kazem said here at the SIAM convention.
The fast growing urbanisation and young population in India would push the demand in the sector, the Managing Director said.
Small and affordable vehicles would continue to drive the growth of the industry, he added.
General Motors has been in India since 1996, starting production at the Halol plant, and has invested around a billion dollars so far in the country.
Speaking at the session, Wilfried Aulbur, Managing Partner India, Roland Berger India, said that there is a need to set up a single nodal ministry for the automobile industry which contributes seven per cent in the country's GDP.
He also called for a level playing field to deal with the issues of the industry besides asking for the need to define and support R&D initiatives and engage in constructive, fact-based discussions about key issues like emissions and safety.