New Delhi, Sep 4 (UNI) The Indian automobile industry today urged the government to take note of the deteriorating condition of the industry and initiate corrective measures to help achieve the Automotive Mission Plan.
''The Indian automotive industry has, from time, to time given suggestions and would be willing and ready to sit with the government to find ways to reignite the engine of growth,'' Society of Indian Automobile Manufacturers (SIAM) President Ravi Kant said while addresssing the annual convention here.
In the past five years, the Indian automobile industry has grown at a healthy rate of 15-27 per cent. ''But now the industry is facing unprecedented challenges,'' he said.
The industry is facing shrinking demand due to lack of available consumer finance, high interest rates and high cost of fuel, besides increase in cost of input material, Mr Kant said.
In the last two years, steel prices has increased by about 40 per cent, copper price are up by 45 per cent, while natural rubber has risen by 40 per cent.
''These factors are having a catastrophic impact on the bottom line of the Indian automobile industry,'' he said adding that would eventually hurt the objective of Automotive Mission Plan in the long run.
The auto industry in collaboration with government has drafted an Automotive Mission Plan 2006-16, which includes establishment of national automotive testing and Research and Development Infrastructure Development Project and generating an additional 25 million jobs.
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