Date:05/09/2008 URL: http://www.thehindubusinessline.com/2008/09/05/stories/2008090551320300.htm

Back Alternative fuel, hybrid options for auto sector urged

T. Murrali

New Delhi, Sept. 4 Except for the type of fuel used, the automobile industry has evolved over a period of time in design, style and performance characteristics. This is the message that came out of the 48th annual convention of Society of Indian Automobile Manufacturers (SIAM) held here on Thursday.

The COO of General Motors, Mr Fritz Henderson, said 96 per cent of the automobiles used petroleum products, as fuel about a century ago and even today the percentage remains the same. This is despite the vehicles evolving in every aspect. However, there will be a significant shift in the fuel during the next century due to depleting fossil fuels and environmental issues.

“The challenge for the automotive industry is to work on reducing the dependency of petroleum fuels,” he said.

Significant attempts have been made by vehicle manufacturers to combat the fuel issue and one such thing is the evolution of compact and small cars.

With rising fuel costs and limited affordability the emerging countries have contributed to the growth of these cars. However, the current scenario demands alternative fuel options and hybrid options for even small cars. Automotive industry leaders felt that the challenges are in sustainable mobility, increasing input costs, rising crude oil cost and currency fluctuations.

The COO of Mercedes-Benz Cars, Mr Rainer E. Schmuckle, said customers’ reluctance and uncertainty affect vehicle manufacturers. So initiatives such as continuous improvement would help these companies to remain competitive, he said. For instance the company has taken about 43,000 measures to optimise the entire value chain to enhance efficiency and cost competitiveness.

Design plays a vital role in order to appeal customers and improve fuel efficiency. The President of Pininfarina Group, Mr Paolo Pininfarina, said design, which is the synthesis of creativity and implementation, is the driving force of innovation.

SIAM’s President and Managing Director of Tata Motors, Mr Ravi Kant, said though the automotive industry has been growing significantly during the last few years, it has to tackle innumerable challenges to continue the momentum. Some of the challenges include shrinking demand, rising input costs, increased cost of fuel, climate change threats and the dearth of talented manpower. Highlighting inflationary pressures and rising cost of steel, copper and rubber along with increasing interest rates, Mr Kant urged the Government to take timely corrective measures in order to maintain momentum of the Automotive Mission Plan.

Earlier the Union Minister for Heavy Industries and Public Affairs, Mr Sontosh Mohan Dev, unveiled the Fuel Consumption Consumer Information label and released the Fuel Economy Information Brochure at the inaugural session.