New Delhi: The 48th edition of the Society of Indian Automobile Manufacturers (SIAM) annual convention got underway at New Delhi, today. The main agenda of the convention is the changing face of the Indian automobile industry, which is celebrating its 60th year in India.

The panel consisting of senior officials of Indian and international automobile and auto ancillary companies along with industry luminaries will also focus on the challenges faced by the auto industries such as rising input costs, increasing fuel prices, escalation of competitive and inflationary pressures, and the dangers of global warming and climate change.

Minister of heavy industries and public enterprises, Sontosh Mohan Dev inaugurated the event.

Delivering the welcome address at the gathering, president of SIAM and managing director, Tata Motors, Ravi Kant, congratulated the auto industry for its consistent 13 per cent growth in the last 7 years including a healthy growth rate, technological advancement, innovation and notable footprints across the world.

However, Kant was quick to identify the new challenges being faced by the sector such as shrinking demand due to lack of available consumer finance and high interest rates. On the other hand increased cost of  raw materials including oil and steel, has affected various segments of the automobile industry significantly.

He also stressed on the dearth of talented manpower and inflationary pressures affecting the slump in the sector. Identifying climate change due to global warming as a key and long term challenge, he stressed on its likely impact on environment and on the industry.

Kant urged the government to take timely, and corrective measures in order to maintain momentum of the Automotive Mission Plan 2006-2016.

The fact that the automotive industry was responsible for about 10 per cent carbon dioxide emissions globally was a major concern. To counter the crisis, SIAM will launch the fuel consumption consumer information and the fuel economy information brochure.

The fuel consumption consumer information will be displayed at the point of sale of passenger cars and two-wheelers by all SIAM members and this would be supplied to all customers of this product along with the documentation of the vehicle. SIAM hopes to commence this by January 2009 and complete the process by 1 April 2009.

Identifying these actions as a firm indication and a commitment of the Indian automobile industry to play a role in reversing the adverse effects of climate change, he spoke about the various other initiatives being undertaken such as introduction of new and more fuel efficient vehicles, mandatory inspection and maintenance regime, removal of old vehicles, efficient traffic management, use of alternative fuels like CNG, LPG  and bio diesel. Introduction of electric / hybrid vehicles would also reduce carbon dioxide emissions, he added.