Hon. Minister Shri Vilas Rao Deshmukh inaugurates 49th Annual SIAM CONVENTION and Golden Jubilee year.

New Delhi, August 28, 2009 - With a backdrop of encouraging news from the IMF on the global recession being on its way out, the 49th Annual SIAM Convention got underway in the presence of several industry luminaries as well as senior ministry officials and bureaucrats. 2009 also marks the beginning of SIAM’s golden anniversary celebrations. The all-day convention has Revival, Restructuring and Sustainable Growth as the Theme was inaugurated by the Chief Guest, the Hon. Minister of Heavy Industries and Public Enterprises Mr. Vilas Rao Deshmukh in the presence of top executives of both Indian and International automobile and auto ancillary companies.

In his inaugural address, the Hon. Minister of Heavy Industries and Public Enterprises acknowledged and appreciated the role SIAM has been playing over the last 50 years and applauded the fact that 2009 marks the beginning of SIAM’s 50^th year celebrations. Noting that the Indian auto industry has been going through a very challenging period in recent times due to the global recession he agreed that the industry had not been insulated from the negative effects of global recession. However, he pointed out that thanks to the Indian government’s prompt action the impact on Indian industry had been cushioned somewhat.

Mr. Deshmukh went on to mention that though the Indian automotive scenario was showing positive signs of improvement compared to the recent past, the commercial vehicle sector still needs attention in terms of renewed investment and much more R&D. Together with this there was a need for skilled manpower too if a positive rate of growth was to be sustained.

At the same time, Mr. Deshmukh stressed that environmental and climate change issues were also very important issues of the day and while there has been a start in certain quarters, alternative fuel/technologies have to be embraced wholeheartedly. The minister also touched upon the fact that setting up a National Auto Design centre was a priority as was the Automotive Testing and R&D Infrastructure Project (NATRiP) project which would provide unique and better testing opportunities to manufacturers and would help manufacturers bring down costs as such facilities are currently available abroad only.

Prior to the Minister’s address Dr Satyanarayana Dash, Secretary, Ministry of Heavy Industries & Public Enterprises released a SIAM film on the occasion. In his accompanying address, Mr. Dash mentioned how important an automobile purchase was for the average Indian, rating it as the second most important discretionary purchase after purchasing a home. Touching on the industrial downturn after October 2008 he said that while as early as Feb 2009 industry in general had been posting impressive growth figures - the cement and coal industries have shown growth - a lot of work still remains to be done especially in terms of improving all round infrastructures. The two-wheeler sector for example has shown over 19 per cent growth. Continuing on the subject of growth, Mr. Dash said that the July trend of growth was expected to continue over the coming festival season, helped by the fact that there are several encouraging signs like India to become a global hub of small compact car as well as the establishment of Project NATRIP and 9 testing centres.

Earlier in the day Mr. Ravi Kant - President, SIAM and Vice-Chairman, Tata Motors set the ball rolling by welcoming Mr. Vilas Rao Deshmukh, the Hon’ Minister of Heavy Industries & Public Enterprises and the participating delegates to the SIAM Annual Convention. Mr. Ravi Kant traced the path SIAM has taken since Aug 1958 when the first automobile association of India industry of India was formed in what was then Bombay. Post his description of SIAM’s role in the Indian automobile industry Mr. Ravi Kant set the tone by giving an overview of domestic sales trends and the several different vehicle categories. Touching upon the receding recession, Mr. Ravi Kant clarified that the automobile industry is not yet out of the woods even though the current scenario has changed for the better in some ways, like the youth of India now having more disposable income.

Concluding the inaugural session, Mr. Pawan Goenka, Vice President-SIAM & President (Automotive) – Mahindra & Mahindra delivered the vote of thanks in which he touched upon how despite going through very turbulent times the Indian auto industry has been one of the first to show signs of a recovery. Attributing this to positive action on the part of the Indian government he hoped that Mr. Vilas Rao Deshmukh and his ministry would continue to guide and support the auto industry. Dr Goenka also expressed his appreciation and thanks to the past presidents of SIAM on the occasion of 2009 being SIAM’s 50^th year of operation.