The Prime Minister Narendra Modi has told the automobile industry to succeed in innovations for greener alternatives and develop a ‘futuristic blueprint’ for the sector.

“It is a need of the hour that the automobile industry’s innovation for greener alternatives attains a new momentum, ensuring the protection and conservation of environment, and help in making India self-reliant,” he said at the 62nd Annual Convention of Society of Indian Automobile Manufacturers (SIAM).

“I am sure that various stakeholders gathered at the convention that include industry experts, manufacturers and policy makers, will hold vibrant deliberations to develop a futuristic blueprint for the automobile sector,” the PM said in a message to the industry.

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He said ‘Amrit Kaal’ is an opportunity to achieve self-sufficiency in every sector and the automobile industry is no exception. “Be it PLI schemes that boost manufacturing or encouragement for electric vehicles (EV) and hybrid vehicles or ethanol-blended petrol, we have taken many initiatives to further empower the automobile industry,” he added.

Speaking at the event, SIAM President, Kenichi Ayukawa said that currently the industry is going through a unique phase. “Some segments have started to see recovery after the pandemic, while a few are still struggling. For example, mass segments like entry-level cars and two-wheelers are facing huge reduction in demand owing to significant increase in the acquisition cost.”

For segments with good demand, there are sully-side challenges mainly being the semiconductor shortage, he said adding that over the next 25 years, auto industry will develop multiple alternative technologies or energy options which are closest to Carbon Net Zero and suit the Indian context.

He said the industry aims to have a dominant share of clean energy vehicles on a life-cycle basis in the next 25 years. “This means a significant share of all feasible technologies, including battery electric, ethanol, flex fuel, CNG, bio-CNG, hybrid electric and hydrogen.”

Ayukawa further said that to achieve such ambitious target, the industry would require some key enablers like having single-minded pursuit of competitiveness. “Second is ease of doing business. A long-term regulatory roadmap for better planning of investments, technologies and product development,” he added.

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