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Stable Long-Term Regulatory Roadmap, Framework Required for Auto Sector: Toyota

Image for Representation
(Picture Source: Reuters)

Image for Representation (Picture Source: Reuters)

Policy interventions and regulations should focus on larger national imperatives and be technologically neutral, Kirloskar said. Globally this approach has given good results, Vikram Kirloskar said.

A stable long-term regulatory roadmap and policy framework is required for the domestic auto industry, which is currently reeling under a prolonged slowdown, Toyota Kirloskar Motor (TKM) Vice Chairman Vikram Kirloskar said on Friday. Speaking at SIAM annual convention here, Kirloskar said long-term policy framework is important to safeguard industry competitiveness.

"Today we stand at crossroads with various technological pathways and alternate energy options available for a cleaner, greener sustainable future. We need to pause and revaluate our options keeping in mind the recent geopolitical developments, ultimate national objectives including building a self-reliant India and safeguarding industry competitiveness," Kirloskar said. Based on this, it is essential that a long-term stable regulatory roadmap and policy framework is created for the sector, he added.

The auto industry had built a lot of resources over the years but in this one year it lost almost all of it, Kirloskar said. "In the future, as we go along, there should be long-term plans for the automotive segment.. it would help this industry reach the pinnacle of the economy once again," he added.

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Kirloskar, however, sought a relook at timelines of upcoming regulations due to the ongoing slowdown and COVID-19 situation. "As an industry we have always requested that there should be no changes to regulations once they are decided and notified. However, the adverse impact of the pandemic on the industry is unprecedented and it warrants a relook at timelines of future regulations like fuel efficiency norms and BS-VI second phase," he noted.

Policy interventions and regulations should focus on larger national imperatives and be technologically neutral, Kirloskar said. Globally this approach has given good results, he added.

"One good example is linking taxation to fuel efficiency and carbon emissions, this is a simple transparent and impactful approach," Kirloskar noted. He added that the government should also come up with a national fuel road map.

"Given the multitude technologies for cleaner alternative fuel options, having a comprehensive integrated national fuel road map will help industry make informed investment decisions," Kirloskar said. As the auto sector traverses through this turbulent phase, it is fully confident of the continuous support of the government in taking necessary steps to revive the economy, he noted.