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Industries badly need volumes of 500,000 units every year which would definitely encourage vendors and industry to invest more and achieve higher localisation of parts in vehicles.
He said local vendors had faced tough period after demand of their products declined due to influx of used imported cars.Though the industry is passing through a critical phase due to low production and sales volumes of local cars, local vendors, along with assemblers, are working together to launch three to four new models of cars through handsome investment, human capital and advancement in technology.The Paapam chief urged that the government to ensure true implementation of its recent policy to limit used cars by three years from five and give confidence to vendors through Auto Industry Development Plan (AIDP-II) to enhance their participation in economic and engineering activities of automobile industry.
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