On Monday, the Union Minister of Road Transport and Highways, Nitin Gadkari, demanded that the automobile component industry abstain from a cost-centric approach and instead concentrate on the quality of goods in line with international production standards.
The Minister also demanded that the automotive industry promote the development of a local ancillary industry, thus reducing dependency on imports.
“Quality is important”. You should understand the consumer’s approach now; they need good quality,’ said Gadkari.
Nitin Gadkari’s Approach Towards Automobile Industry
He said the government intends to build key global skills in India by promoting the automotive industry’s smooth integration with the globe. The government is seeking to build an infrastructure in order to boost the country’s electric car uptake.
Gadkari urged the auto industry to work together to achieve a wider national agenda of pollution control , while addressing a virtual conference at Auto Serve 2020 on the issue of ‘Seizing opportunities in the new normal’.
He clarified the measures taken to support electric vehicles, such as reducing GST to 5 percent and encouraging two and three-wheelers to unlink battery costs from vehicle costs as it accounts for almost 30 percent of the bill.
The environment of battery charging is very critical and the government is preparing to set up at least one electric vehicle charging kiosk across the country at about 69,000 fuel pumps, he added.
Talking about Nitin Gadkari’s Dream
“The government is also working to make India a global automobile manufacturing hub in the next five years,” Gadkari also said. This is my dream. This will also lead to achieving the Prime Minister’s vision of “Atmanirbhar Bharat”.
He said this goal is attainable as the auto industry has made significant strides in terms of development of designs and models, robust R&D, huge market, stable government framework and bright and young engineering minds. India is already the largest manufacturer of two-wheelers in the world, he added.
Under the Production-Linked Incentive (PLI) scheme, the government has earmarked over Rs 51,000 crore for this sector, the largest among the 10 champion sectors. He also said that the need for approximately 25 million professional workers in the automotive industry in the near future is immense. This sector would generate maximum employment and growth, he said.
He called upon the automobile industry to push for the manufacturing of flex engines that can be used as fuels with the ability to use petrol or ethanol/CNG. In this aspect, the Indian auto industry wants to follow the example of its counterparts in Brazil and the US. “The opportunity presented by alternative and less polluting fuels such as CNG, hydrogen and electricity will be used by our industry,” he added.
Gadkari also said the government is working towards making an e-highway between Delhi and Mumbai.