SIAM President Vikram Kirloskar says Sentiment is preventing people from investing

SIAM President who is also Toyota Kirloskar Motor's Vice Chairman, Vikram Kirloskar today said it is sentiment that is preventing people from investing. "The last 12 months for automobile sector has been a steady decline...it has been an extremely tough year, in our various sectors - especially the commercial vehicles have been hard hit.

"I think also generally in the manufacturing sector it has been a pretty hard 12 months," Kirloskar said at an event organised to announce the 3rd edition of India Manufacturing Show in Bangalore. "I think it is mostly sentiment that is preventing people to invest, preventing people to buy cars, washing machine...and that's how thing are little bit at a flat level," he added.

Pointing out that for automobile industry to start growing GDP growth of 4 to 4.5 per cent is not enough, Kirloskar said: "We need 6.5-7 or 8 per cent, only then we are going to see super growth in the automobile industry."

Stating that India has potential to be competitive in manufacturing, he said: "If I look at quality, cost and delivery- with my experience- in these key areas it possible to get competitive, provided we concentrate on people, skill development and our process that adheres to concentration on quality."

"There are some things that government can do,there is something we can do to get out of this situation. He said: "We on our side have to take care within our own industry- how to be competitive, how to be best in quality, cost and delivery- which requires hard work..."

"Secondly, we have to look at strategies for market India and factory India. "How do we serve market in India with right product, quality...as well as how do we look at factory India where we can export to the whole world. We have to look at both..." he added.