Auto industry told to be competitive
Design, Packaging and Brand Buiding, these are 3 pre-requisites for India to be a global supplier of auto products, Commerce and Industry Minister Piyush Goyal told the Society of the Indian Automobile Manufacturers (SIAM) annual convention on 4 Sept 2020.
“India is willing to provide a very facilitated environment. We are engaged with many companies who are looking for more resilient value chains,” he said.
“We have to identify sectors where we have a comparative and competitive edge over other countries. I am sure we will become trusted, reliable partners where countries across the world can look at greater engagement with India,” said Goyal.
He called on the automotive industry to work together in the spirit of partnership.
“Ours is a listening Government, and we are delighted to be available to the auto industry to find solutions and work together in partnership to achieve a better future, increase localisation in India and harness export potential on fair terms.
“When a company works in India, they get a large Indian market,” the Minister assured.
“As we move towards Aatmanirbhar Bharat in the automobile sector, the industry’s role becomes even more important. The Government is willing to engage as often as required to find solutions for greater global engagement.
“A focused approach in particular sectors will help us increase our contribution to global supply chains,” he stressed.
Goyal asked the automotive companies present in the country to ask their principles to reduce royalties, adding that reducing this could help the Indian units of these companies to sail through the crisis easily.
The automakers that hold a sizeable chunk of the country’s auto market pay millions of dollars as royalty to their parent companies. Reduction in Royalty can help them reduce the cash outflow, bring down the vehicle prices and help in boosting their domestic sales, he believes.
Regarding the AatmaNirbhar Bharat-Self-reliant India, Goyal said that the auto industry needs to re-strategise to emerge stronger from the crisis.
India is looking at its domestic capabilities and with the expansion of capabilities through the AatmaNirbhar Bharat campaign “India is willing to provide a very facilitative environment to companies, looking for a more trusting trade partner and a better supply chain,” he said.
“We have to look at sectors where we have the edge over other countries. The auto industry holds that potential. Here we have a large market and companies can get scale which is very important for cost competitiveness,” the minister underlined.
On the issue of Quality Control Orders (QCO), Goyal said that these should not be seen as barriers. It is high time India starts looking at quality control and provides the world with high-quality products.
“Once we get the quality consciousness in the country as a whole, we will transform India’s future, and that is the effort we are taking. Quality is never expensive.
“It brings down the cost. Quality brings in a culture in the company which always brings in: – More efficiency, Better productivity, and Makes cost reasonable.
“We need to bring in a culture of quality in the country, which has to be emulated by the customer. Only then will we become a global player,” he said.
The minister said that to help the auto industry with affordable logistics options, Indian Railways is ready to reduce freight rates.
Goyal said that the automakers should find out innovative finance options, which would attract the financiers to lend money, as well as attract the buyers.
He added that to help the auto sector, especially exporters, the government will be happy to come up with innovative credit guarantee schemes. #auto #cars #manufacturing #exports #MakeinIndia #components /fiinews.com
