Cost Of Not Investing In Innovation Would Be Inevitable Obsolescence: Piyush Goyal To Automakers

by Swarajya Staff - Mar 17, 2022 03:16 PM +05:30 IST
Cost Of Not Investing In Innovation Would Be Inevitable Obsolescence: Piyush Goyal To Automakers Commerce Minister Piyush Goyal (Pic Via YouTube Screengrab)

Union Commerce and Industry Minister Piyush Goyal has cautioned the automakers that the cost of not investing in innovation would be inevitable obsolescence, an official release said on Thursday (17 March).

Goyal was addressing the Atmanirbhar Excellence Awards and seventh Technology Summit 2022, organised by the Automotive Component Manufacturers Association (ACMA) in New Delhi.

The minister said the government was sensitive to auto sector’s concerns related to chips shortage and the recently approved Semiconductor India Programme with a budget of Rs 76,000 crore would help reduce import dependence and eventually help the country become Atmanirbhar in the arena of chips.

He added that the nimble Government and agile Industry working together collectively could capture markets across the world.

Highlighting India’s capabilities in the field of auto components manufacturing, the minister asked automakers to make greater use of Indian made components, a Commerce Ministry release said on Thursday.

Stating that the Government held back stringent norms regarding import substitution due to Covid-19 and industry assurances on securing equal market access, Goyal urged automakers to buy local and substitute imports.

Goyal gave a four-point call for action to the auto components industry for being future ready. He asked them to invest more in R&D, especially e-mobility, especially and battery tech.

The minister urged the industry to disrupt existing targets, set higher benchmarks for performance and aspire to take five Indian companies in top 50 global automotive suppliers club.

He also encouraged them to identify core competencies and isolate key areas to reduce import reliance.

The minister further called for designing world-class quality standards in the automotive sector.

The minister asked the automotive industry to work on improving the e-mobility ecosystem, including fuel cell vehicles with Hydrogen storage, higher Lithium-Ion battery capacity at low price and better charging infrastructure, the release said.

He cautioned automakers that the cost of not investing in innovation and evolving to meet the needs of the future would be obsolescence, it added.

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