60TH SIAM ANNUAL CONVENTION

The 60th SIAM annual Convention against the backdrop of Covid made for some very interesting insights.

- Deepti Thore and Deven Lad

Accounting for almost 7.1 per cent of India’s GDP and providing direct and indirect employment to about 37 million people, the Indian auto industry has been battling some unprecedented challenges for some time now. Witnessing the steepest ever decline in the first quarter (April – June 2020) of the current financial year with vehicle sales plummeting by over 75 per cent as compared to the corresponding period last year, the industry has seen a good escalation in its working capital needs in order to address regulatory as well as market requirements. More regulations are on the way and also the market requirements are shifting rapidly.

Amid such developments, the 60th Annual SIAM held at Delhi recently (under the theme, ‘Re-building the Nation, Responsibly’) saw Rajan Wadhera, Past President, SIAM & Senior Advisor, Mahindra & Mahindra, announce in his inaugural speech the need for regulations and how they would help to catch up with the rest of the world in terms of specifications and vehicle standards. “There is however a need for the government to intervene and resolve the problems faced by the automotive manufacturers,” he said. Opining that it was necessary to strengthen the auto industry so that it is capable of investing further into the upcoming safety regulations, Wadhera expressed that Indian auto industry is reeling under pressure because of the Covid pandemic.

THE RETURN ON INVESTMENT