GOVERNMENT PLANS INVESTMENT TO TAP POTENTIAL OF INDIAN AUTOMOTIVE INDUSTRY -- KAMAL NATH ADDRESSES AUTOMOTIVE ROUNDTABLE
Date : 07 Dec 2005
Location : New Delhi
The government realises the tremendous potential available for the Indian automotive industry due to the internationalisation of the auto industry and, therefore, plans to invest in testing centres to facilitate the process of manufacturing and product development, Shri Kamal Nath, Union Minister of Commerce & Industry, said while addressing the Tenth “Asia Pacific Automotive Industry Roundtable” organised by the Economist Corporate Network, here today.
He noted that while the Indian auto industry had registered impressive growth, the growth pattern had not been uniform over all segments. “While cars are doing well, and account for three-fourths of the total exports, the other sectors require to be looked at more closely if India is to become an Automotive Hub – something which we are determined to achieve…. India top three destinations are Sri Lanka, Bangladesh and Nepal. We must now focus on Europe, the Middle East and Africa. Components would find a good market in the USA as well. Despite the uneven growth, every segment of the industry has been meeting the aspirations of the customers by offering a wide variety of quality products whilst simultaneously measuring up to meet accelerated emission and safety standards”, he said.
The Minister mentioned that globalisation of automotive industry had impacted on the component industry also and noted that the component industry had faced considerable restructuring in the 1990s as a result of changes in the relationship between suppliers and assemblers. “I was reading an article recently about the ‘international toothbrush’ – a case study on how the various parts of an electric toothbrush was manufactured in five countries over three continents, because that is what made it cost-effective. This new globalised paradigm is something we must take full advantage of”, he added.