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Auto industry told to upgrade technology

Our Bureau

NEW DELHI, Jan. 18

THE Minister for Heavy Industries and Public Enterprises, Mr. Manohar Joshi, has called on the domestic automobile industry to take the lead in the adoption of environment-friendly technologies.

He also asked the industry to explore the possibility of mergers, acquisitions and consolidations to enhance the levels of their operations to globally competitive scales.

Delivering the key-note address at the concluding day function of the 5th Auto Expo 2000, organised jointly by the Confederation of Indian Industry (CII), the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Component Manufacturers As sociation (ACMA), Mr. Joshi said that due to increasing competition in the country, specially from global players, it was imperative for the domestic automobile and component industry to adopt the latest technology.

While this may be in the form of technology absorption, fresh investments in research and development would be critical, he felt. Mr. Joshi also called for exploitation and creation of a larger niche for exports by the Indian auto industry. He also asked the industry to take advantage of the sizeable and well spread-out engineering and technical talent available in the country. This could be achieved by better coordination with the local technical and engineering institutes.

Meanwhile, the number of visitors to the 5th Auto Expo has crossed the one-million mark, CII has said. According to it, there were more business visitors than general public.

Mr. Venu Srinivasan, President of SIAM, called for increased attention by the Government on the auto industry. He opined that the industry is currently contributing about 4 per cent of the gross domestic product (GDP) and is targeting to grow to about 8 per cent in the next decade.

Mr. Srinivasan said the auto industry contributes about Rs. 36,000 crores to the GDP, employs over two lakh people directly and over one crore indirectly. He also felt that the car industry will grow four-fold in the next ten years and the two-wheeler in dustry, which is still less than half the size of the industry in China, will grow by over two-and-a-half times by 2010.

He also asked the Government to help the industry by aiding investments in oil industry for reducing sulphur, benzene and lead content in automotive fuel. He sought elimination of leaded fuel on a nation-wide basis, and felt that by 2010, emission standa rds in India should be on par with those in the US and Europe.

No word yet on Suzuki

gear-box technology

Speaking at the sidelines of the Auto Expo, the Minister said that the Government has asked Suzuki Motor Corporation (SMC) of Japan, the equal partner with the Government in the domestic car major Maruti Udyog Ltd (MUL), to provide gear-box technology to enable the indigenous production of this critical auto component.

``We have asked for the transfer of the relevant technology. SMC has not denied MUL this technology, but we are yet to hear from them formally,'' he said. Mr. Joshi said the Government is still negotiating with the Japanese small car major and will conti nue to do so.