48th SIAM annual convention adresses challenges faced by the India auto industry

04 September 2008

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.