Govt blamed for non-green auto drive

Lack of govt support keeps auto cos away from green tech: KPMG

The Indian automobile industry is shying away from investing in hybrid and green technologies due to restricted government incentives,according to a KPMG report.

“It is believed that in a price-conscious economy such as India’s,the shift towards green vehicles will be slow unless spurred by government mandates,” said the report The Indian Automotive Industry – Evolving Dynamics,which was released today.

Although,major players in India are equipped with the necessary capabilities to develop cleaner vehicles,they do not see much merit in commercialising them until green revolution gains momentum – most likely through changes in political legislation and the scale required for commercial viability,it said.

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The study also said consolidation and alliances could happen in the India automotive sector.

“Some consolidation or alliances could possibly be expected,driven by the need for access to technology,manufacturing facilities,service and distribution networks,” according to the report.

As the industry matures and the benefits of collaborations become more apparent,super-specialists may emerge in which the automobile is treated as a system,with each specialist focusing on a sub-system,akin to the IT industry,it added.

In 2009-10,Indian automobile sector recorded its highest volumes ever making the country one of the few countries in the world,which saw growing passenger car sales during the recession.

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“The future landscape will be driven by action by related stakeholder groups,government,urban transport planners and fueling infrastructure providers,” KPMG National head – Automotive Yezdi Nagporewalla said.