Automobile sector's long-term growth rate has come down drastically in the past 5 to 10 years even before Covid started in India, said SIAM President and Maruti Suzuki Managing Director & CEO Kenichi Ayukawa on Wednesday.
Speaking at the 61st SIAM Annual Convention, Ayukawa highlighted: "And, Covid has further caused negative growth for the industry. It has pushed industry volume back by many years," Ayukawa said at the Special Plenary Session.
Besides, he cited that the industry is facing many immediate and medium-term challenges.
Ayukawa said the immediate short-term concerns for the industry were pandemic related uncertainties, global shortage of semiconductors and rising commodity prices amongst others.
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"To overcome these challenges and bring back industry on the track of growth, focused action is required through some key enablers."
Furthermore, he pointed out enablers such as making industry move further towards 'Atmanirbhar Bharat' vision via increased localisation.
Regarding the same, Ayukawa pointed out that SIAM and ACMA have together worked out a 'Localisation Roadmap' with a target of about 15-20 per cent further localisation in next 2 to 5 years.
Additionally, he said that SIAM has prepared an approach paper for a long term regulatory roadmap that takes care of all aspects and gives clarity on future investments.
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In addition, Ayukawa informed the convention that the automobile industry is working towards new powertrain technologies.