Government, auto industry must work closely: Praful Patel

The government and auto industry need to work together to help revive the sector, Union Minister for Heavy Industries and Public Enterprises Praful Patel said Thursday.

Addressing the inaugural function of the 12th Auto Expo here, Patel called for greater cooperation between the Society of Indian Automobile Manufacturers (SIAM), Automotive Component Manufacturers Association of India (ACMA) and the Confederation of Indian Industry (CII).

"There has been a temporary roadblock in terms of automobile growth in the last few years and the industry which was growing for the last seven to eight years saw reversal of trend," Patel said.

"It is important that the government realizes that this needs to be corrected... take the right measures and give incentives and energy stimulus," he added.

The representatives of the industry need greater cooperation among themselves and with the government as well, he said.

"We have to streamline the sector and the industry and government will have to come together to shake things up."

Patel commended the Indian manufacturers for showing the world that they can develop technologies on their own, but also advised them to be focused to deal with the present crisis.

"Indian manufacturers are at par with the best from around the world. They have been able to develop technologies indigenously. The auto industry needs to have focus and clarity," he said.

"It is heartening to see that virtually every major auto manufacturer in the world has now entered India but we want to see our auto makers to be homegrown because it leads to more job generation."

Acknowledging the importance of the automobile industry, Patel said it contributed 25 percent to the country's manufacturing gross domestic product (GDP) and five percent of the total GDP.