66th annual convention of Automotive Component Manufacturers Association
Commerce Minister Piyush Goyal on Wednesday urged the automotive industry to convert more local businesses into global businesses by expanding their reach outside India and to move up the value chain for top quality of products.
Speaking at the 66th annual convention of Automotive Component Manufacturers Association (ACMA) here, Goyal also said more and more women workforce should join the auto industry and the industry should focus more on safety of the vehicles.
“In times of floods or unfortunate events, the electronic auto-locks in the cars can actually be very very dangerous…SIAM is also here. Should be addressing these challenges. You make one industry conscious of safety and don’t leave it to the government to come and interfere in your businesses…I think you need to take safety to the next level,” he said.
He also urged both ACMA and SIAM members to make scrappage of old vehicles a profitable and a valuable proposition for new vehicle buyers, and it can only be a shared effort, both of government and the private sector.
“We have tried on our side to give some value and incentives, I think industry needs to come forward also and give a fair value when you scrap a vehicle so that we can see a greater market for your new age vehicles,” the Commerce Minister said.
In his final urge, Goyal said the government wants to see greater technology play a role in the auto sector; technology, which could include Artificial Intelligence (AI) for better quality control, better assessment of customer needs, possibly customised vehicles which are now taking more and more traction in the US and Europe.
Meanwhile, Goyal also said that the government was coming up with a new regulation to exempt high-tech sector companies from mandatory Bureau of Indian Standards (BIS) certification for equipment and components needed to set up manufacturing facilities in India.
Union Minister for Commerce & Industry Piyush Goyal addresses the 66th Annual Session of the Automotive Component Manufacturers Association of India (ACMA), in New Delhi on Wednesday.
| Photo Credit: ANI
The challenges in getting the certification were raised by Japanese firms from the semiconductor sector during his recent visit to Tokyo.
A company in the semiconductor sector needs around 13,501 components to manufacture a semiconductor chip and the Japanese firms stated that obtaining BIS approvals for such a large number of components is a major challenge, he said.
“If they are making a semiconductor of this quality, then surely they will take care of what they are buying. So, we are coming up with a new regulation. In such high-tech sectors, we will exempt all companies from all BIS. They can source from anywhere in the world whatever they want,” Goyal said.
Meanwhile, Goyal also added that India and the US are working together as partners in critical mineral partnership and India is also a member of US-led strategic alliance ‘Pax Silica’ that aims to build a resilient supply chain for critical minerals and AI.
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