Plea for stable auto policy
New Delhi: Automobile industry leaders on Wednesday asked the government to provide clear and stable policy framework, saying it should not "become a crisis for the industry" whenever there is a regulatory change.
Heads of Maruti Suzuki India, Mahindra & Mahindra and Tata Motors were of the opinion that having short-, medium -and long-term policies will help automobile and component makers plan capacities and align capital investments accordingly.
Speaking at the annual convention of the Auto Component Manufacturers of India (ACMA), Mahindra & Mahindra managing director Pawan Goenka cited examples of the adoption of BS-VI emission norms and the implementation of BS-IV across India to highlight how regulatory changes can impact the auto industry.
"Regulatory environment will remain very aggressive. We have seen that already and it will not change. Whether it is safety or emission or even other things... and at times the change is expected within a time period that we in the industry do not consider enough lead time," Goenka said.
Earlier in the day, Maruti Suzuki India managing director and CEO Kenichi Ayukawa also expressed similar sentiments and stated that having clear and stable policy framework would enable the automobile industry to prepare for future mobility.
"Technologies are big ticket investments for original equipment manufacturer (OEMs) and auto component manufacturers," he said.
A short-term, medium-term and long-term policy road map will be useful to plan capacities and align capital investments, Ayukawa added.
Stressing the need for a well defined road map, he said, "a clear and stable policy framework for new technologies will give confidence to the principal investors in OEMs and component manufacturers".
Tata Motors CEO and managing director Guenter Butschek also stressed the need for support from the government with active policies to meet the challenges ahead.