Mr Ravi Kant said the Indian automobile industry, which grew at the rate of 15 to 27 per cent in the past five years, was facing numerous challenges now due to shrinking of demand.

“Today the Indian automotive industry is facing unprecedented challenges. The demand is shrinking due to lack of available consumer finance, high interest rates and high cost of fuel,” he said.

Union Commerce & Industry Minister Kamal Nath, in his key note, said the government the government would provide “enabling policy framework” and added that the auto sector should take advantage of these and leverage their strengths for expanding to other parts of the world.

Choice destination

“We hope by the middle of next decade, India should be the destination of choice for design and manufacture of automotive components and vehicles in the world,” he added.

Inaugurating the convention, Heavy Industries & Public Enterprises Minister Santosh Mohan Deb said “in order to meet future challenges, automotive companies will need to look at ways of not only ensuring that the best available talent is chosen to lead them, but also to identify leaders of tomorrow.” Dwelling on adverse impact of rising oil prices on automotive industry, Mr Deb said the Centre was willing to provide assistance for alternate fuel options such as the hybrid.