The 48th Annual SIAM Convention got underway at New Delhi Hotel Ashok on September 4, 2008 and was a star-studded affair with global CEOs from Indian and international automobile industry present in full force.

Celebrating 60 years of the Indian automobile manufacturing, the theme for the convention aptly was Challenges for Leadership - 2016 and Beyond. Indian Minister of Heavy Industries and Public Enterprises, Santosh Mohan Dev, set the tone by highlighting the challenges faced globally by automobile manufacturers like rising input costs, increasing fuel prices, escalation of competitive and inflationary pressures and the looming dangers of global warming and climate change. What emerged was the need to innovate for cleaner and sustainable technologies by Indian auto manufacturers.

Ravi Kant – president, SIAM & managing director, Tata Motors congratulated the industry on its consistent 13 per cent growth in the last 7 years and highlighted that innovation as a key factor that best describes the Indian auto industry today. The minister also spoke about the Automotive Mission Plan 2016 and reiterated the government's single-minded focus to make the sector globally competitive. Hoping to surpass set targets for the coming years, Santosh Mohan Dev spoke about the Indo-German joint working group, the 5 Inter-Ministerial groups and various tax incentives that would give direction to policy initiatives in India for the auto and auto ancillary sectors. Ravi Kant too expressed confidence that the sector will do better in the years to come with growth predicted across segments. However, he was quick to point out the new challenges faced by the players like shrinking demand, rising input costs, increased cost of fuel, climate change threats and the dearth of talented manpower. Highlighting inflationary pressures and rising cost of steel, copper and rubber along with increasing interest rates, Kant urged the government to take timely, and corrective measures in order to maintain momentum of the Automotive Mission Plan.

However, the star was Ratan Tata whose afternoon session saw packed house. The chairman of Tata Motors said small cars reach out to the largest population, and the demand for small cars is phenomenal in emerging economies. He added, "I do believe that efficiently packaged cars will be in demand. All of our cars are small cars. So, whether we manufacture or export, we will be in that category. We will not be able to survive in big cars," he said.

In a country like India more so, the small car in all likelihood will be the first car for the family. He suggested that the India version would not be as accessorised as the ones they will overseas. He added that there would be demand for high and medium cars in other developed countries. Citing the success that Fiat has seen in India he suggested that probably one will see a small car in a garage where you will also have a Bentley or Ferrari.

But the most important question that was around was will Nano deliveries would be on schedule given the uproar in Singur, to which he added that Tata Motors will make all possible efforts to launch Nano ontime. However, what was not clear if the first lot of Nano would roll out from Singur or an alternate location, plans for which are under consideration of Tata Motors. Asked if customers would be able to buy Nano by October, Tata said, "The question needs to be asked not to me but to others."

Popular From The Web

Comments By The Readers