SIAM appeals for single ministry to formulate technical regulations

The Society of Indian Automobile Manufacturers (SIAM) has urged the government to set up a single ministry for formulating all technical regulations for the Indian automotive industry. This appeal is part of SIAM’s ongoing 56^th annual convention today in New Delhi.

SIAM, the apex national body representing the Indian automobile industry, also emphasised the need for specific measures for improving the current state of the public transportation system and rural connectivity across the country.

Addressing the large gathering of the attendees at the annual convention today, which focusses on a theme – Building the Nation, Responsibly – Vinod Dasari, president, SIAM and MD, Ashok Leyland, said: “We urge the government to set up one, single ministry for formulating all the technical regulations for the Indian automotive industry. This is much needed for ensuring sustainable development of this industry.”

He was referring to the lack of clarity across several areas due to changing environment with new incoming regulations on emissions (including real-time driving emission standards), safety, and others. It is known that the ban on diesel cars with engine displacement of more than 2,000cc in Delhi for some time had also put several carmakers in a catch-22 situation, where they raised doubts on the same and had asked for sustainable policy roadmap. OEMs such as Mercedes-Benz India and Toyota Kirloskar Motor had even spoken about holding up potential investments in India.

While the ban was lifted earlier this month, the government has levied an additional one percent green cess on the sale of new diesel cars powered by 2-litre or bigger engines. The one percent green cess is now levied on the ex-showroom price of diesel models that fall in this category.

According to Dasari, the automotive industry had to bear a cumulative loss in the range of Rs 4,000-Rs 4,500 crore due to the 8-month ban on diesel cars in Delhi-NCR, a point that he had highlighted yesterday at the ACMA annual conventional as well.

In the context of improving the state of the public transportation system, he stated: “There is a need for specific measures for the upgradation of public transport system and rural connectivity in India.”

Giving his address yesterday at the ACMA’s 56^th annual convention, chief guest Anant Geete, Union Minister for Heavy Industries & Public Enterprises, had said that the government will support the auto industry in every aspect. “The auto sector is very important in creating new jobs and is a great contributor to India's overall growth story. We have to accept new technologies in order to evolve and be at par with the world. With new technologies, we also need to ensure quality assurance. Maintaining strict quality standards is very crucial for the survival of industry players. The government will take all important steps to promote the automotive industry. The government is worried about pollution issues that we are facing but all concerned ministries are acting together for the betterment of the industry. The government ministries and the automotive industry must work as a single team. Industry concerns are also the concerns of the government bodies, and we shall work together to address these concerns.” 

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