 "Regulatory challenges hamper sector's performance: Tata Motors")
Tata Motors today said there is a need to eradicate basic challenges deeply rooted in the overall ecosystem, which are accentuated by intermittent regulatory uncertainties of Indian automobile industry has to realise its true potential.
Citing demonetisation, issues faced during the transition from BS-III to BS-IV and GST implementation, the company said the industry wants well-orchestrated and collaborative approach from the government.
"With our future Auto Mission Plan, if we have to realise the true potential by 2026, we need to eradicate the basic challenges deeply rooted within the overall ecosystem, accentuated by intermittent regulatory uncertainties," Tata Motors CEO and MD Guenter Butschek said here.
Speaking on the sidelines of the annual convention of SIAM, he said, "Regulatory uncertainties in the face of demonetisation, BS-III to BS-IV transition and GST have caused disruptions in the market."
Stating that the industry understood and fully appreciated regulatory and policy changes, Butschek added, "What we seek today is a platform to ensure a well orchestrated, collaborative and participative approach from the government for a policy framework that enables and supports sustainable growth."
With India lagging behind on emission and safety norms as compared to the rest of the world, he said it is important that all OEMs work towards bridging this gap and invest in future technologies and leverage on emerging trends for a greener and sustainable automotive future.
"Today we live in a world of complexity and hence the focus, speed of execution and quality of implementation across the ecosystem will be key to our success," Butschek said.
Commenting on the company's turnaround strategy, he said that the company expects to have a structural turnaround in the current fiscal that will catapult it from a loss-making operation to profit making operation.
On his relationship with Tata Group Chairman N Chandrasekaran, Butschek said, "their relationship is good" and added that the chairman was in fact also involved in the drafting of the auto major turnaround strategy.
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