The country’s automobile industry is a key driver of the economy which can help India achieve self-reliance across the manufacturing value chain, said Prime Minister Narendra Modi on Thursday.
In a written address to the annual convention of Society of Indian Automobile Manufacturers (SIAM), the Prime Minister underscored the significance of the need for the government and the auto industry to work in tandem so as to achieve true “self-reliance” across the manufacturing value chain in India’s pursuance of its ‘Viksit Bharat’ goals.
"As we move towards the vision of 'Viksit Bharat', it is essential for the government and industry to work together to achieve true self-reliance across the entire automobile manufacturing value chain,” he said.
While advancing towards attaining global leadership in green and smart transportation, the country is flooded with opportunities for investment and collaboration, said the PM, which the auto industry can take advantage of.
"The auto industry has been a torchbearer of the 'Make-in-India' initiative, boosting global confidence in Indian manufacturing and positioning India as a hub of automotive excellence," the prime minister said in his message, which was read out by SIAM President, Shailesh Chandra.
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Stressing on the need for strong policy frameworks and visionary reforms, PM Modi said India is fast moving towards building a “future-ready transportation ecosystem” which requires the integration of modern technology with world-class infrastructure that will “form the backbone of India's ambitious growth story in mobility”.
The auto sector, he added, is also embracing sustainability, focusing on green tech, EVs and sustainable alternatives.
“These advancements strengthen India's clean mobility goals, while creating opportunities in design, production and deployment.”
The Prime Minister said the growth of startups must be encouraged and supported, especially in the energy storage segment.
Lauding the role played by SIAM in facilitating dialogue among policymakers, manufacturers and researchers on key challenges facing the automobile sector such as emissions, safety and infrastructure, the PM said it had helped align industrial strategies with national goals.
SIAM hails GST rate cuts
Industry body SIAM said on Thursday it supports the overhaul of the Goods and Services Tax (GST) structure and the reduction in tax rates on automobiles, which, it said, will inject fresh growth momentum into the Indian automotive sector, make vehicles more affordable, and enable broader access to personal mobility.
Addressing the annual convention of the Society of Indian Automobile Manufacturers (SIAM), its president, Shailesh Chandra, welcomed the government's move to "suitably amend some of the procedural issues which would greatly help in supporting the ease of doing business".
"The automobile industry is immensely grateful to the government of India for its recent landmark decision to reduce GST rates on vehicles, which will bring renewed cheers to consumers and inject fresh growth momentum into the Indian automotive sector," Chandra said.
With entry-level segment of vehicles set to become more affordable, first-time buyers and middle-income families will benefit significantly, he added.
Noting the Indian auto industry’s steady performance across domestic markets and exports in the last fiscal, Chandra said passenger vehicles recorded the “highest-ever sales of 4.3 million units, with a growth of 2 per cent over the previous year”. Exports in the passenger vehicles category had also achieved their highest-ever levels at 7.7 lakh units, registering a robust 14.6 per cent increase year-on-year.
The two-wheeler segment also continued on its recovery path, he added, saying it had reached 19.6 million units and growing at 9.1 per cent, "though it is still below the earlier peak of 21 million, which was achieved in FY19".
Thanking the government for "suitably amending some of the procedural issues”, Chandra said they would “greatly help in supporting the ease of doing business".
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