New Delhi: Auto industry organization Siam said on Friday that manufacturers are not in a position to invest to implement the government’s new standards, as the industry is going through a very difficult period. The Society of Indian Automobile Manufacturers (SIAM) also said that government assistance is needed to push towards the targets set under the Automotive Mission Plan 2026 (AMP 2026).
SIAM Chairman Rajan Vadhera said at the organization’s annual session here that the government has to invest a lot to implement the upcoming new standards and the industry is not earning due to the decrease in consumer demand. Therefore, the industry does not have the capacity to invest to implement new standards such as Corporate Average Fuel Efficiency (CAFE) norms to be implemented from 2022 onwards. Vadhera also said that there should not be too much of regulations because India’s emission norms are already the strictest in the world. He said that to achieve the targets listed in AMP 2026, it is necessary to give demand incentives to the industry.
Kenichi Ayukawa, MD & CEO of Maruti Suzuki India, said on Friday that the Indian auto industry is going through the toughest phase in history and needs government support in the form of GST reduction and incentive based scrap policy. Ayukawa, who is also the chairman of the auto industry body Siam, said the sector has gone back several years due to the corona virus epidemic and the ongoing slowness since last financial year. He said that in the face of the global health crisis, the Indian auto industry played a role in the manufacture of ventilators, personal protective equipment (PPE) and also imported test kits from abroad to fight the virus.
