For auto industry, challenge is ‘developing new vehicles at better price points’

Our Bureau Updated - October 06, 2011 at 09:05 PM.

Must focus on meeting people’s aspirations, says Seshasayee

(From left) Mr David Schutt, CEO, SAE International; Mr R. Dayal, President, SAE India; Mr Venu Srinivasan, Chairman, TVS Motors; Mr R. Seshasayee, Executive Vice Chairman, Ashok Leyland and Mr Ted Robertson, President, FITSA, at the 16th Asia Pacific Automotive Engineering Conference, in Chennai on Thursday. -- Bijoy Ghosh

Growing aspirations of the consumers to own vehicles will drive the auto industry to develop new products with challenging price points, said Mr R. Seshasayee, Executive Vice-Chairman, Ashok Leyland.

“Aspiration of people to own vehicles will go up even at lower per capita income levels, challenging the industry to develop new products and better price points,” said Mr Seshasayee, at the inauguration of the 3-day, 16th Asia Pacific Automotive Conference, organised by Society of Automotive Engineers.

Mobility solutions

“These kinds of mobility solutions are important for the growth in the coming decades, with relentless rate of urbanisation.”

Mr Seshasayee also stressed on the need for confluence of technologies in developing mobility solutions. The auto industry is often the whipping boy, when it comes to emission and pollution, he said. “This notion will continue in the future, hence there is a need to push for effective alternative fuels.”

Urban planning push

Mr Venu Srinivasan, Chairman and Managing Director, TVS Motor, said it is imperative for the auto industry to push for urban planning in order to grow the business.

“We need to take leadership role and join forces with NGOs working towards urban planning, or else we cannot sell our product,” said Mr Srinivasan.

Changes in urban planning call for “great deal of political will” and “a social revolution”. With challenges of increasing urbanisation, pollution, vehicular density and traffic in the coming 20 years, the need for urban planning cannot be understated, said Mr Srinivasan.

Multi-modal transport

There are 143 million registered vehicles today. As the auto industry reaches $165 billion revenue by 2020, there will be 30 million two- and three-wheelers on Indian roads.

India will be ranked third in green house gas emissions by 2015, from rank 5 today, thus posing a challenge to “quality of life and mobility.”

India needs to look at multi-modal transport solutions, public parking facilities, raised bus lanes and dispersing work spaces outside the city by building planned satellite cities. Apart from urban planning, there is also the need for developing smart, safe and connected vehicles, he said.

Published on October 6, 2011 14:48