The outgoing president of SIAM Ravi Kant on Friday called for a need to continue government -industry partnership to ensure investments in the sector are used productively.
"The industry is not out of the woods and needs support and encouragement at least during the whole of the financial year. Over Rs 78,000 crore is being invested in the sector," Kant said in New Delhi while addressing the SIAM annual convention.
The global meltdown triggered by the collapse of the banking sector dried up availability of finances for new vehicles and has "had an extremely deleterious impact" on the industry, the president said.
"Domestic sales barely grew by 0.7 per cent with passenger vehicles growing by 0.8 per cent and two wheelers by 2.6 per cent. Medium and commercial vehicles declined by 32.2 per cent, while LCV declined by 7.1 per cent," Kant added.
However, an increase in the passenger vehicle exports to 53.7 per cent and to 22.5 per cent in two wheeler exports, helped salvage the industry position overall.