The 2nd Mumbai Auto Show Inaugurated

INDIA WILL NOT BE A DUMPING GROUND FOR USED VEHICLES - MANOHAR JOSHI

Speaking at the inaugural of the 2nd Mumbai Auto Show, being organised jointly by CII, SIAM and ACMA, Mr. Manohar Joshi, Hon'ble Union Minister for Heavy industries and Public Enterprises, stated that the Indian auto industry was one of the oldest in Asia, and had an investment of Rupees 50 thousand crores and a turnover of Rupees 60 thousand crores. It contributed 4% of India's GDP. This sector had strong forward and backward linkages to innumerable small and medium industries and through its multiplier effect it provided direct employment to 4.5 lakh people and indirectly employed more than a Crore people.

As the industry was undergoing tremendous transformation, there was much anxiety among the major players. As a word of assurance, Mr Joshi said that the forthcoming and much awaited auto policy would be an enabling and a proactive one, which would take care of the hindrances and the hurdles of the auto sector. In particular, he stressed that the Government would take care to ensure that India would not become a dumping ground for used vehicles. However, he appealed to the players of the industry to maintain efficiency, reduce costs, and to upgrade technology.

In reply to the need for infrastructure facilities in Mumbai, the Minister emphatically stated that he has not forgotten his commitment to the Infrastructure Development of his Home State of Maharashtra. He assured that he would talk to the concerned Ministries at the Centre to get clearances for the establishment of a huge permanent Convention Centre in Mumbai on similar lines as the Pragati Maidan in Delhi.

Earlier, in his welcome address, Mr Baba N Kalyani, Chairman of the 2nd Mumbai Auto Show gave an overview of the growth of the auto sector and the hurdles being faced by the manufacturers while gearing up to face global competition by way of regressive taxes, high imports and high input costs. He pointed out the need for more governmental support in the new auto policy. Highlighting several initiatives undertaken by CII, Mr Kalyani said that the Mumbai Auto Show has been spurred by the success of the earlier Auto Show held in 1999. While mentioning the highlights of the present Auto Show he mentioned the increasing participation of several components and accessory manufacturers and service providers along with vehicle manufacturers, and producers of designer cars.

Mr Abhay Firodia, President, SIAM in his remarks stressed the need for greater Government investment in infrastructure in order to give a boost to the auto sector. While the two-wheeler segment and' the passenger car segments have performed satisfactorily, the negative growth in the commercial vehicle and heavy vehicle segment was a matter of great concern according to Mr Firodia. This called for greater Governmental support.

Mr Pradeep Mallick, Chairman, CIl (Western Region) mentioned that the Mumbai Auto Show has been organised on similar line as the Auto Expo series organised by ClI in New Delhi. Such exhibitions provide a platform for industry not only to explore business oppurtunities, but also to showcase its initiatives. He further added that the Auto Show of 1999 had generated business worth 6.5 crores and had attracted over 40,000 visitors.

In his vote of thanks Mr L Ganesh, President, ACMA mentioned that the auto component industry was presently undergoing a major transformation and given the right direction and a conducive environment, the auto component industry could reach far greater heights. He expressed the hope that the much awaited auto policy would provide the necessary stability for the growth of this important sector in India.

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