Tata Motors has raised concerns over policy changes in the automobile sector, saying these cannot only be driven by a group of NGOs and activists. The auto major said the industry should be made a stakeholder while dealing with the policies as it has the right expertise and technical knowledge about the industry.
"There is nothing wrong with the change of policies and even nothing wrong if the policies are changed in the very challenging period of times. But I think we need to be a part of the policy-making process because the policies cannot only be driven by a group of NGOs and activists," said Tata Motors CEO and MD Guenter Butschek. He further added, "The policies are needed to be based on the knowledge and on the expertise."
According to him, the automakers are trapped in this and might lose their competitiveness in the global market. "We get trapped somewhere in the middle and we might lose the ability to take the next level of the competitiveness as far as the global map is concerned," he said while addressing SIAM annual convention. Butschek's remarks have come in the ongoing debate in the backdrop of the diesel fuel policy.
In August, the Supreme Court has lifted the over six months ban on the sale of diesel cars above engine capacity of 2000 cc in Delhi region after levying 1 per cent 'green cess' from carmakers. It had also ruled that Central Pollution Control Board will set up a separate account in a public sector bank to collect this green cess.
Butschek said the auto industry would remain one of the major drivers of the GDP, however, he also added there are plenty of challenges in future.
"These challenges would give us positive aspirations and open new horizons. We have to identify the opportunities for the industries to grow," he said, adding that we have to do it with positive mindsets. According to him, some policies as vehicle scraping would have a huge contribution to the environment and safety.
"Let the government finally decide how it works as whether it is voluntarily or it’s going to be forced or subsidised. At the end of the day we just need the clarity, then we would trust accordingly and the contribution is going to be huge in the industry and finally to the economy," he said.
Butschek further added that GST, which is expected to be implemented soon, would help the auto industry. "This is something which is going to help us as an industry, which will, in particular, help our customers also... This is a welcome move," he added.
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