Auto Inc at SIAM see huge potential for growth, new age disruptions to further present opportunities | The Financial Express

Auto Inc sees huge potential for growth in India, new age disruptions to further present opportunities

The panelists agreed that India needs to look at new disruptions and not just focus on cost but quality to grab opportunities in the global market.

Auto Inc sees huge potential for growth in India, new age disruptions to further present opportunities
L-R: Dr Bornai Bhandari, Senior Fellow, NCAER; Girish Wagh, Chairman, SIAM Commercial Vehicle CFOs Council and ED (CVBU), Tata Motor; Sanjay Kapur, President, ACMA and Chairman, Sona Comstar; Nitin Gadkari, Minister of Road Transport & Highways, Government of India; Vinod Aggarwal, VP, SIAM and MD & CEO, VE Commercial Vehicle and Rajesh Menon, Director General, SIAM.

The second plenary session on ‘Indian Auto Industry for India’s Economic Growth’ at the Society of Indian Automobile Manufacturers (SIAM), 62nd Annual Convention saw deliberations on recovery and future potential of the automotive industry.

The Guest of Honour, Nitin Gadkari, Union Minister of Road Transport & Highways, Government of India said “For making India a $5 trillion economy and to achieve the government’s vision of Aatmanirbhar Bharat, the automobile industry will play a critical role.”

“Within the next 5 years, we are looking at making the auto industry touch a market size of Rs 15 lakh crore. We strongly urge the industry to be quality, innovation and safety centric. With a thrust on innovation in renewable sources of fuel like ethanol based Flex Engine and green hydrogen, vehicular pollution can be reduced substantially.”

He said that the industry needs to reduce imports and focus on maximising exports. “The choice of customers is changing. We see a shift from cost centric to quality centric products by consumers. We are encouraging manufacturing of semiconductors in the country. I look forward to auto industry’s initiative and investment in innovation and new segments like chips,” added Gadkari.

The minister further stated that the government was planning to construct 27 Green Express Highways. This will bring down the cost of logistics, which currently stands at 15-16% of the total cost. Bharat NCAP will play a big role to increase exports as the industry willl develop the vehicle quality which can be accepted by the world.

The session also saw participation from Vinod Aggarwal, VP, SIAM and MD & CEO, VE Commercial Vehicles; Sunjay Kapur, President, ACMA and Chairman, Sona Comstar; Dr Bornali Bhandari, Senior Fellow, National Council of Applied Economic Research (NCAER) and Girish Wagh, Chairman, SIAM Commercial Vehicle CEOs Council and Executive Director (CVBU), Tata Motors.

Aggarwal said that the auto industry needs to grab the available opportunities to scale up. There is a need to address challenges but in a sustainable fashion.

Kapur highlighted the robust performance of the Indian auto component sector which clocked a record turnover of $56.5 billion in FY2022 growing almost 23%.

“We are hopeful buoyancy will continue in FY23. There are deep structural changes already underway and the adoption of clean fuel & 5G will enable a parallel shift.”

Dr Bhandari gave a presentation highlighting that there was ample room for growth across India Auto Inc. She highlighted that the sales of two-wheelers and commercial vehicles was lowest in 5 years; and despite a strong growth the PV sales was still below the FY18 peak.

Tata Motors’ Wagh said that “The incentives under the FAME 1 and FAME 2 scheme have helped increase electric vehicle penetration in the country. The government should continue it untila threshold has been achieved.”

He concluded by sharing his perception on the outlines of 7Cs of electric mobility – Common, Connected, Convenient, Congestion-free, Charge, Clean and Cutting-edge.

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