Society of Indian Automobile Manufactures (SIAM) urged the government to have a single ministry to formulate technical regulations for the automotive industry, after ban on registration of diesel vehicles with engines above 2,000cc in Delhi NCR, put manufacturers in a tight spot.
At the 56th SIAM Annual Convention, managing director of Ashok Leyland and president of Siam, Vinod Desari said, “the automobile industry suffered a loss of Rs 4,500 crore in the last eight months”
Desari added that the automobile industry has faced many challenges recently and may continue to do so in future.
In order to lessen troubles for the manufacturers, the apex body representing India’s Automobile industry urged the government to create a single ministry that would be able to address issues more efficiently.
The Supreme Court had in December 2015 banned registration of new diesel vehicles with 2-litre engine. Though the ban was lifted earlier this month in lieu of 1 per cent green cess, the industry suffered a massive loss of Rs 4,500 crore.
As per reports, Mercedes and Toyota incurred huge loss in the Delhi NCR region, because of which they have decided to hold back investments for the Indian market. Mahindra, on the other hand, has reduced its engine size to 1.99L to suit Supreme Court’s guidelines.