Safeguards against used cars in new policy

By Our Special Correspondent

NEW DELHI, AUG. 25. The Union Heavy Industries and Public Enterprises Minister, Mr. Manohar Joshi, today assured that a new automobile policy providing adequate safeguards against import of used cars will be unveiled within the next two months.

He told newspersons the new policy being prepared in consultation with the industry, would address the concerns of the vehicle industry and component manufacturers.

It would have adequate safety measures to help the industry grow, he said. There was no basic difference of opinion between the vehicle makers and the component makers although they might seek alternative means to achieve the same end.

Earlier, inaugurating the 40th annual session of the Automotive Component Manufacturers Association (ACMA) here today, he reaffirmed the Government's support to the cause of the Indian automotive industry, including new players who had established facilities in the country. Mr. Joshi said it would be the Government's endeavour to ensure that the investments made by the auto industry in the country were not jeopardised.

He also noted with satisfaction the presence of so many players from the vehicle and component industry in the meeting leading to the confidence that the two industries were working in close partnership to chalk out the domestic automotive industry's growth strategy.

The automotive industry was undergoing rapid transformation and the impact of globalisation had been more pervasive in this industry than in any other sector of the economy, he noted.

Observing that the basic ingredients for doing R & D already exist in the country, he expressed the hope that India would develop as an important global base for auto component manufacturers, backed by a high level of design and development capability.

The auto component industry had always had a special strength in the area of developing exports and the country now had a number of state-of-the-art vehicles being manufactured in the country, he said.

Having successfully localised many of the parts and components for these vehicles, the Minister hoped the auto industry would be able to develop an export market for these parts and components to service similar vehicles in other countries.

Mr. Joshi called on the auto industry to get used to operating in a highly competitive market especially in the emerging global scenario where the Government had a diminishing role and protectionist barriers were progressively getting dismantled. The future global business would clearly be done on the platform of quality, productivity, price and delivery rather than on protection based on Government policy, he said.

Building efficiency, productivity and developing international competitiveness, therefore, had to be high on the agenda of the industry, he pointed out and the Government would be happy to partner the industry wherever required in this respect.

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