Govt must have clarity on what it wants from auto industry: Vinod Dasari

Outgoing SIAM president points out that the govt has been talking about BS-VI, ethanol, CNG and now electric vehicles

Vinod Dasari, whose tenure as president of Society of Indian Automobile Manufacturers (Siam) ended early this month, has said the government needs to make up its mind on what it wants from the industry. 

"Our gripe with the ministry and government is not about regulation. They need to regulate the industry but they must make up their mind and not keep changing it frequently. You decide whatever is in national interest and we will follow," Dasari, managing director and chief executive officer at Ashok Leyland, said in an interaction. 

Dasari said the minister (Nitin Gadkari) wants industry to switch to electric vehicles. But he points out that one day the government talks of BS-VI emission standards, other day ethanol, next about CNG (compressed natural gas) and now electric vehicles. "All these are different. Which one should I develop and by when, which technology you want is not clear and the industry is blamed. If you don't know, work with us," argues Dasari. Gadkari said early this month that the government will "bulldoze" the industry if it does not switch to clean vehicles. The government wants to promote an all-electrical vehicle fleet in the country by 2030. 

Auto the industry is easy to fleece, says Dasari. "The minister said I will 'bulldoze' the industry but I want to know one regulation that industry has not met for which you have to 'bulldoze' me. Media can get away with a shot at the auto industry, ministry can get away with a shot at the auto industry. Let us shut the auto industry for one month and see," he said. He said the government did not defend the industry during transition to BS-IV vehicles in March even though the industry followed the regulation made by government, which said BS-III vehicles can be manufactured till March 31, 2017. 

When asked about the efficacy of Siam in addressing industry concerns, Dasari said there is no alternative to Siam but the body needs to be more efficient. "We have internal differences that need to be ironed out. I had to keep the flock together and that took away a lot of energy. There is a lot of infighting. But don't do it in the public domain," he said. Bajaj Auto, leading two-wheeler maker and a Siam member, filed a case in the Supreme Court early this year seeking a ban on the sale of BS-III vehicles from April when the industry was seeking an extension to sell BS-III vehicles manufactured till March.

Ashok Leyland, the second-biggest player in medium and heavy commercial vehicle space, has been improving its market share and performance at a time when commercial vehicle market leader Tata Motors is trying to make a comeback and turn profitable. "We want to ensure that the same cyclicality that affected us earlier should not hurt us again. We are in the process of substantially growing up exports by investing in assembly plants and export offices. The truck business is growing but we need to grow other businesses like defence, spares, light commercial vehicles," he said. 

Dasari said the company has not set targets for market share. "I will focus on doing the right things for my customers. I need to give him the right vehicle and right service. If I can make his business more profitable and this is our singular focus, market share will follow and vehicles will sell. I will not chase market share." 

He declines to comment on Tata Motors and its strategy. "They will do what they have to do. I don't want to comment on competition. Let's focus on the customer and not focus on market share. We must ensure the profitability of customer and channel," said Dasari. 

Ashok Leyland will focus on expanding the defence business, currently worth Rs 500 crore. The company aims to grow it to Rs 5,000 crore in the next five years. "We will not start making every kind of submarine and warship. It is simply to expand a range of logistics vehicles for the armed forces. Defence business is different and you work on developing products and then make bids. I may lose the bid if I am Rs 10 higher in price. It is risky but I am not focused on things outside our core," he said. The company will also bid for defence contracts in consortiums.