Auto industry facing deep structural slow-down: SIAM

Indian auto manufacturing sector continues to experience slump due to low demand in the domestic market, and high cost of the raw materials. Society of Indian Automobile Manufacturers (SIAM) on Wednesday said that with the challenges, the premiere auto body has prepared a roadmap on localization.

Kenchi Ayukawa, Maruti Suzuki Managing Director and CEO, President, SIAM: said: "Even before Covid started, India's automobile industry was facing deep structural slow-down. In all four segments of the automobile industry, passenger vehicle, 2-wheeler, 3-wheeler and commercial vehicles, the long-time growth rate has come down drastically in the past 5 to 10 years."

He further said that due to the onset of Covid, there has been a negative growth in the industry and has pushed industry volume down by many years. He also highlighted the immediate and medium-term challenges that the sector is facing, with immediate challenge being Covid-related uncertainties, global shortage of semi-conductors, rising commodityprices and import restrictions.

The SIAM president, while giving a call to Atmanirbhar Bharat, said that both SIAM and ACMA (Automotive Component Manufacturers Association of India) are working to further add 15-20 per cent localisation in the auto industry.

Industry experts, including auto manufacturing giants, called for a deeper support by thegovernment for circular economy. Apart from this, focus on export was echoed by the experts to thegovernment dignitaries to counter domestic market slump.

Union Minister of Heavy Industries, Mahendra Nath Pandey, at the event, lauded the efforts being made towards promotion of electric vehicles in the country, and said that the government is now focusing on EV charging infrastructure.