Mr. Rajat Nandi, Director of the
Society of Indian Automobiles Industry (SIAM), in an interview with Nikita
Singh.
Q. How does SIAM provide sustainable development to the
automobile industry?
Ans. SIAM is a representative body of the Indian
Automobile Industry that works towards fuelling the growth and
development of the Indian industry. This representative body is
committed to strengthening the industry and developing an
internationally competitive Indian automobile industry.
Along with various initiatives, SIAM has established the Society for
Automotive Fitness (SAFE) with an outlay of Rs. 10 million for
inspection and certification of all vehicles. In addition to serving as
a role model for setting up subsequent centers all over the country, the
Institute would serve as a forum for vehicle manufacturers to gain
feedback from vehicle users through direct interface. This would help
gain a better understanding of their practical difficulties and
consequently devise appropriate product solutions.
It has also established an Automotive Research Fund (ARF) to commission
research project on future direction and development of the industry in
the wake of WTO to help the Indian automobile industry integrate within
the global economy.
SIAM recognizes that in the New World order, competitiveness is
paramount to all other factors and that the consumer rules.
Q. What is your reading of the Indian Auto Industry as it
stands today? Also car manufacturers of all hues see India as a major
market. What reasons could be attributed to the current boom in the car
industry?
Ans. Over the last few years, the industry has gone
through a trough and is now on the upswing. In value terms, the industry
had recorded 12% fall in the fiscal 1997-98. It recovered marginally to
register only a 4% fall in sales in 1998-99. The trend has been reversed
since January 1999 as the automobile industry has been recording a
positive growth over the last few months. It is expected to grow at
approximately 12-15% in the current fiscal year. All segments of the
automobile industry including commercial vehicles, passenger cars and
two wheelers are expected to grow.
The growth in sales figures is attributed to the distinct and sustained
turnaround in the economy signalled by the positive growth signs
emerging from other core sectors. The industry is on the growth path
fuelled by the high level of competition in the automobile industry and
strong consumer confidence. It is confident of high growth in the next
three years.
Q. Euro II and environmental pollution are the major concerns
at this juncture. How well do you think has the auto industry coped with
it?
Ans. The Indian Automobile Industry has announced a
series of significant initiatives as part of its onging efforts to
reduce vehicular emission. It has announced a calendar for countrywide
rollout of Stage II (Euro II equivalent) compliant 4-wheelers ahead of
schedule, provided fuel of appropriate quality is made available. As far
as two-wheelers are concerned, they will be meeting the tightest
emission norms in the world from April 2000. A major inspection and
maintenance initiative for in-use two-wheelers in Delhi and stepping up
of supply of CNG buses to Delhi Government to meet the Supreme Court
directives has also been announced.
The initiatives clearly demonstrate the automobile industry's
commitment to improve air quality. Besides Vehicular Technology, Fuel
Quality and Traffic Management play a critical role in reducing auto
related emission.
Q. What could be the reason behind alternate fuel not becoming
popular in india?
Ans. Alternative fuel has gained importance over the
last few years for two reasons, environmental concern and conventional
fuel depletion. Worldwide, various countries have adopted alternate fuel
for their transport. For example in Japan, all taxis run on LPG.
In India too CNG and LPG are increasingly becoming popular. Recently,
the Supreme Court has ordered conversion of all 8 year old buses in
Delhi into CNG and conversion of the entire fleet of commercial vehicles
to CNG by March 2001. Also, the Karnataka High Court has ordered all
three-wheeler to be converted to Gas by December 31, 1999.
India will soon gear up for alternative fuel, though the process will
take a while as CNG is not available in all places in India. Moreover,
there is no authenticated certification system in India for LPG and its
safety standards.
Q. Is road infrastructure on the agenda of SIAM? What does the
automobile industry do to improve the condition of the roads?
Ans. SIAM has focussed on the areas of road traffic
improvement and road safety as these are the most critical in the
current scenario.
Q. Taking into consideration the mammoth amount of money
involved in road construction, should privatization of roads be allowed?
Ans. Privatization of roads is a welcome step,
considering the budgetary constraints of the government. |
