<center style='bottom-border:1px solid black;'>
            <p><b>ASSOCHAM<b></br>
            <b>Summary Record of<b><br>
            <b>First Virtual Meeting of National Council on Auto & Auto Ancillaries<b><br>
            Held at 11:30 AM on 30th June 2021<br>
            </p>
            </center>
            <p style='text-align:justify;'>
            The First Meeting of the National Council on Auto & Auto Ancillaries of ASSOCHAM was held through
            video conferencing at 11:30 AM on 30th June 2021.
           </p>
           <p style='text-align:justify;'>
           <b>  R S Kalsi</b> , Chairman, National Council on Auto & Auto Ancillaries, ASSOCHAM & Senior Executive
           Director - Marketing and Sales, Maruti Suzuki India Ltd., welcomed all the participants and mentioned
           that it is an exciting time when ASSOCHAM has introduced a new structure, which will enable the
           Council to work more efficiently and effectively. It will help members to share their thoughts and put
           forward their issues & concerns in front of concerned authorities through ASSOCHAM.</p>
            <p style='text-align:justify;'>
            Auto & Auto Ancillaries is one of the focus areas of ASSOCHAM through which different policy
            interventions and Government representations can be taken up. Auto ecosystems like component
            manufacturers, OEMs, etc. are important areas. Multiple stakeholders are part of the discussion and
            that will make a holistic effort to drive the council towards its successful implementation.</p>
            <p style='text-align:justify;'>1)Shri Darshan Hiranandani, Chairman, ASSOCHAM National Council on Data
            Centers & Group CEO, Hiranandani Group
            </p>
            <p style='text-align:justify;'>
            Auto is one of the important sectors of the Indian economy and the manufacture of transport
            equipment accounts for almost 10 per cent to 12 per cent of the gross value added within India's
            manufacturing sector, and any decline in that area significantly hurts India's economic outcomes.
            </p>
            <p style='text-align:justify;'>
            <b>Pooja Ahluwalia</b> from Primus Partners gave a presentation highlighting ASSOCHAM's functional
            priority on identified 4 pillars and emphasised on deciding 3-4 themes by the council on key areas
            which would be focused on during the Year. It was decided that a sample Template for the same would
            be sent to members for their views, which will help them in identifying priority themes and setting the
            agenda of the council for the Year.</p> 
            <p style='text-align:justify;'>
            <b>  Satyakam Arya</b> Co-Chairman, National Council on Auto & Auto Ancillaries, ASSOCHAM &
            Managing Director & CEO, Daimler India Commercial Vehicles Pvt. Ltd. Said that "the auto industry, in
            fact, was struggling even before the COVID-19. and what has happened with the COVID-19 is many of
            those effects have been amplified. In fact, if you take a look back at the automotive industry, globally,
            and also in the context of India, I think we are facing three storms together".
            </p>
            <p style='text-align:justify;'>
              Arya added, "The first one is the cyclic storm. We've seen that reflected in the volumes or the
           market size. The second one is the structural reforms and the third one is the transformational stock".</p>
           <p style='text-align:justify;'>
           He further said that "when we look at the commercial vehicle industry, two years ago, we had sold
            400,000 trucks. Last year, this number came down to 100 per cent. Now, this was the segment, which
            was the most effective, but if you look across past reverse the effect of slowing down of the economy
            and pandemic has been in double-digit growth. And in most of these sectors, we have gone back 10
            years in terms of the size of the market and that's a matter of deep concern. This is something which
            we must also think about it, later how can we push the growth agenda for the customers".
           </p>
           <p style='text-align:justify;'>While talking about the structural reforms he said that "it is getting impacted by the regulations or by
           shifting consumer behaviours. COVID-19 has actually amplified the effect of the structures reforms.
           We all have to think about, how do we reimagine. There are businesses that we can convert this crisis 
           but this will require large investments and this will also require advocacy with the government and
           other stakeholders of our industry to get the right solution for our industry".</p>
           <p>He added, "The third topic is more long-term in nature and what is getting accelerated day by day.
           And that is the transformational stuff, we all are talking about or community views, which will be
           carbon neutral, we're talking about electrification, we're talking about fuel cell. And this will lead to a
           dramatic change in the way the industry is organized or structured". </p>
           <p style='text-align:justify;'>  Arya while discussing about GST issues, said that "It's certainly not just asking for a reduction in
           tax, but put it in a different way and we should bring three things together; One comparing the tax
           structure of other countries, Second we should bring out the aspect of how the technology gap is
           closing now looking at India as compared to Europe or America now, for example, Titanium
           DSX, Earlier we had PS4 so vehicles were cheaper and this shows that vehicles have added a huge
           amount of average cost so they become expensive and third is per capita income in India compared
           to those economies. If we bring these three together then it will show how economical vehicle India
           have become.</p>
           <p style='text-align:justify;'><b>Following other major suggestions were made during the discussion:</b></p>
           <p style='text-align:justify;'>&#9679; The automotive sector provides 37 billion direct and indirect jobs while stimulating job
           creation in the other industries as we</p>
           <p style='text-align:justify;'>&#9679; The sector is expected to account for 65 billion jobs in India by year 2026 as companies
           increase production. </p>
           <p style='text-align:justify;'>&#9679; The sector is expected to account for 65 billion jobs in India by year 2026 as companies
           increase production. </p>
           <p style='text-align:justify;'>&#9679; The industry has faced many challenges including devastating costs.</p>
           <p style='text-align:justify;'> &#9679; Going to the lockdown challenges, leading the demand-supply equation MSMEs are facing
           serious cashflow issues.
           </p>
           <p style='text-align:justify;'>&#9679; The rise in input costs increased the price of vehicles and a huge spike in fuel prices is a double
           whammy for the consumers.               
           </p>
           <p style='text-align:justify;'>&#9679; An incentive-based policy is needed for scrap over 15-year-old commercial vehicles and
           revised axle norms.              
           </p>
           <p style='text-align:justify;'>
           &#9679; There is a need to promote localisation. Priorities or Support needed in the sourcing of
            automotive components under the Make in India initiative.               
           </p>
           <p style='text-align:justify;'>
           &#9679; There are issues related to GST in the EV sector. There is 5 per cent GST on batteries which
           come with the vehicle but GST at the rate of 28 per cent will be applicable when it is sold
           separately. There should be parity and GST applicability should be 5 per cent for all cases            
           </p>
           <p style='text-align:justify;'>
           &#9679; People are skeptical about their jobs, future, their health; the pandemic is not only impacting
           the health, but also the very core of human psychology. Many consumers have started 
           questioning their consumption patterns; people are shifting their expenses more towards
           health care and insurance.          
           </p>
           <p style='text-align:justify;'>  
           &#9679; There is rising awareness and inclination for savings, more for future protection rather than
           gratifying and impulsive needs.        
           </p>
           <p style='text-align:justify;'>   
           &#9679; The industry currently is facing multiple challenges like how to manage their various supply
            chain issues i.e. shortage of semiconductors, as well costs typically steel import restrictions
            through different quality control orders are some of the areas of concern as of now.       
           </p>
           <p style='text-align:justify;'> 
           &#9679; Most of the dealers were unable to open their showrooms in May. Even in June, some
            dealerships remain closed because of lockdown in those states or towns, this is a time to
            closely monitor the local situation and OEMs should continue to support their suppliers and
            dealer.
           </p>
           <p style='text-align:justify;'> 
           &#9679; The increase in the cost of raw materials is a major point of concern.         
           </p>
           <p style='text-align:justify;'>   
           &#9679; The industry has always stood by the country at times of need and supported the government.
            Just like during the first wave, in the second wave also many companies came forward to
            support healthcare infrastructure, augments the supply of medical oxygen, and support local
            communities.       
           </p>
           <p style='text-align:justify;'>  
           &#9679; It was informed that the Maruti Suzuki has undertaken a mega initiative of scaling up the
            production of PSA oxygen generator plants by over 10 times utilizing its expertise. Under CSR,
            along with some of its supplier partners, Maruti Suzuki has donated 25 such plants to
            government hospitals in various states.
           </p>
           <p style='text-align:justify;'>  
           The meeting ended with a vote of thanks to the Chair
           </p>
           <p>******</p>
            