HEADLINES:
December 14 2018
Automakers call for clear, stable policy
06 September 2018

Seek roadmap to plan capacities and align investments, support for implementing new technologies

Automobile industry leaders on Wednesday called for a ‘clear and stable policy framework’ for the industry.

Whenever there is a regulatory change, it should not “become a crisis for the industry,” they said.

Heads of Maruti Suzuki India, Mahindra & Mahindra and Tata Motors were of the opinion that having a short, medium and long-term policy roadmap would help automobile and component makers plan capacities and align capital investments accordingly.

“Technologies are big ticket investments for OEMs and auto component manufacturers. A short-term, medium-term and long-term policy roadmap will be useful to plan capacities and align capital investments,” said Maruti Suzuki India’s Managing Director and CEO Kenichi Ayukawa.

Speaking at the annual convention of the Auto Component Manufacturers of India (ACMA), Mr. Ayukawa said a clear and stable policy framework for the new technologies would give confidence to principal investors in OEMs and component manufacturers.

“Policy stability and support for new technologies will help attain quick critical mass for the industry,” he added.

He added that while the industry was committed to meet the energy security goals of the government, imperatives for India were different. Hence to meet the energy security goals, India may need a technology neutral approach.

“Let us keep all options open — EVs, hybrids, CNG, methanol and ethanol. We must invest in new technologies and build capabilities and capacities in all these areas,” he said.

Scrappage policy

Mr. Ayukawa also stressed the need “to quickly introduce a comprehensive Scrappage Policy for Automobiles,” a long pending demand of the industry.

Mahindra & Mahindra Managing Director Pawan Goenka cited examples of BS-VI emission norms adoption and implementation of BS-IV across India to highlight how regulatory changes could impact the auto industry.

Asking the government to provide a long-term road map “so that we can prepare for these changes”, Goenka said, “Every change that happens should not become a crisis for the industry.”

Tata Motors CEO and Managing Director Guenter Butschek also stressed the need for support from the government with active policies to meet the challenges ahead.

He said that such support would help the auto industry to “very carefully prioritise” and put “rightly resources behind,” going forward.

 

 

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