The National Automotive Authority to be set up by the Indian government will encourage R&D activity in the auto sector, thereby making it more competitive
 R&D activity in the country’s auto sector is expected to witness dynamic changes with the Government of India (GoI) planning to set up the National Automotive Authority (NAA) under the Department of Heavy Industry. Speaking on the sidelines of the golden jubilee celebrations of the Automotive Component Manufacturers Association on Tuesday, Union minister for Heavy Industries and Public Enterprises, Vilasrao Deshmukh said that NAA will further aid the growth of the Indian automobile industry.Industry players upbeat
Meanwhile, GoI’s decision has sent cheers among the automobile fraternity, which believes that the decision could not have come at a better time considering the booming auto market of the country. In this context, Nikunj Sanghi, vice president of the Federation of Automobile Dealers Association, while speaking to a Machinist360 correspondent, said, “It is a wonderful decision taken by GoI as an umbrella organisation monitoring R&D activities will help the country to become a hub for auto manufacturing, particularly in the small car segment. Encouraging R&D will bring down product cost and as well as help India to overtake China and emerge as the world’s leading automobile market.”
According to the figures available in the official site of the Society of Indian Automobile Manufacturers, the gross turnover of the automobile industry, which stood at US$36,612 million in 2007-08 touched US$38,238 million in 2008-09. According to Manjunath S Samprathi, managing director of Sun Castings, a mid-sized manufacturer of auto parts in Bengaluru, “Encouraging R&D in the sector will help auto majors to bring innovation in their product profile and at the same time guide them to gauge customer sentiment. It will also help to cut down unnecessary costs and help the sector to be more competitive.”
Members from other ministries as well as from the automobile sector will be featured in NAA. With foreign firms eyeing to set up their manufacturing units in India, the auto industry is expected to witness a further growth.
Arup Choudhury |
