ACMA - SIAM Interaction

9th June 2003Chennai

Agenda• Harmonisation with International

Standards• Evolving a process of formulating

Regulations• Formation of a Technical Cell in MoRTH

SIAM

Harmonisation with International Standards

• India has joined WP-29 as an observer• Indian delegation to participate in its first

meeting from 24th – 27th June 2003 at Geneva

• Delegation to be led by Mr Alok Rawat, Joint Secretary, MoRTH

SIAM

Harmonise with ECE regulations

• Adopt/ modify to suit Indian Conditions, to the extent essential

• Availability of Test Facilities• Market Acceptance• Socio- economic considerations

SIAM

Objective of Formulation of an SIAM Road Map on Safety

• To lay down an action plan for implementation of safety regulations over the next decade taking into consideration the approach followed internationally

• To provide a mechanism for bridging the gap between Indian and international regulations.

• To enable Government to put in place necessary policies for all stake holders.– Road Map has been finalised at the last CMVR

Technical Standing Committee meeting on 21-23 May 2003 in Pune

SIAM

Principles

• Harmonisation with International Standards & well laid-out Road Map for Safety Standards

• Specify Norms, not Technology

• Market forces are best way to influence change

SIAM

Market forces are best way to influence change

Positive Response from the Government:• Accepted SIAM argument: not to mandate but let

superior technology gain its own momentum– 2 Stroke vs 4 Stroke - increasing sales of 4S over 2S – Golden Quadrilateral – increased containerisation – Multi-axle vehicles

• However, at times, interventions are necessary to correct market distortions– Retractable Seat Belts – Need for well defined Road Maps. Eg.: Emission Road Map (Mashelkar

Committee), Safety Road Map, Bus/ Truck Body Code, Inspection & Certification Systems, etc.

• Vehicle retirement policy : SIAM recommendations– Auto policy has underlined the need for terminal Life policy

SIAM

Specify Norms, not Technology

Positive response from the Government:

• Guiding principle of Expert Committee on Auto Fuel Policy chaired by Dr R A Mashelkar

SIAM

“As elsewhere in the world, the Government should decide only the vehicular emission standards and the corresponding fuel specifications without specifying vehicle technology and the type of fuel. . . ”

Specify Norms, not Technology (Contd…)

SIAM

• Indigenous manufacturing capabilities & cost sensitivity of society ignored

• Mandating of Rear View Mirror size, even if vision requirements are met

• Steering Effort– The current standards are at par with ECE– Mandating of Technology not justified

• COP of components being suggested without ensuring adequate testing facilities

Positive response from the Government:

• Joined WP 29 as Observer

• Final stage discussions within Government on suggested Safety Roadmap

Harmonisation with International Standards and Well Laid out Road Map

for Safety Standards

SIAM

Current Contentious Issues• Technology being mandated for meeting

Standards– This is against worldwide principles

• Some ad-hoc regulations are formulated to address enforcement lacunae– Suggested Regulation which in effect lead to

Mandating Tyre specifications may act as a fuse for over loading

– Lack of enforcement against overloading is being addressed by mandating increase in engine power

SIAM

• In sectors like CVs, specific Technology being mandated without addressing the basic issues :–Bus & Truck Body Code–Accreditation of Body Builders–Enforcement against overloading–Lack of Inspection & Certification Systems

• Utility of mandatory requirements are not being evaluated in totality resulting in wasteful expenditure:–Warning Triangle–First aid kit–Fog Lamps

SIAM

Current Contentious Issues (Contd…)

• SIAM’s mission is to work as a catalyst towards the sustainable development & growth of the Automotive Industry

• SIAM believes in standing by a set of principles which have evolved through collective wisdom & consensus over the years. These principles have to be borne in mind whenever contentious issues are proposed

• Automotive Industry proactively working towards harmonisation with more stringent standards & norms. What is required is, adequate lead time for gearing up supply chain & productionising (Eg. Emission & Safety Road Map)

• Active Participation of Auto & Auto Component industry is imperative in all policy making processes as is practiced world-wide (Proposal for Technical Cell)

In Conclusion

SIAM

Technical Cell in MoRT&H

SIAM

Background

• India has decided to participate in UN ECE WP-29 as observer

– Later become a signatory to either 1958 agreement or 1998 agreement or both

• Need to support and enhance the regulation formulation capabilities of Ministry.

• Full-fledged Secretariat for WP-29 and harmonisation activities required in Ministry.

SIAM

Genesis Structure similar to JASIC to be adopted in

India

This body to act as a secretariat for

regulations formulations in the country and

regulation harmonisation activities under

WP-29.

SIAM

Adoption of Technical cell in Stages

• Stage –ISince India is participating in WP-29 as an observer, initially a small cell to be created in Ministry. One member each from Automobile Manufacturers and Component Manufacturers on deputation to this cell till the full Secretariat for the Cell is formed. SIAM will act as Principal Secretariat.

• Stage –IIBased on JASIC structure a Technical Cell to be formed and jointly funded by the Government and the Industry.

SIAM

Proposed Structure• A six to seven member fulltime secretariat

to be formed. • Industry to nominate two experts to work

on deputation in the secretariat• Working Groups to be formed to work on

various regulations and grouped in a similar fashion as under the WP 29.

SIAM

Proposed Structure

MoHI

MoRT&H

Technical Cell

Governing Council

Government

Industry

Test Agencies

MoRT&H MoEF

SIAM ACMA TMA ATMA ASRTU

ASEABus Body Builder Association

ARAI VRDE Any Other

SIAM

Budget for Technical CellS. No Head Cost/ Annum

(Rs in Lakhs)01 Remuneration of the Secretariat 30.00

02 Travel International- WP-29 10.00

03. Travel other international 5.00

04. Travel Domestic 5.0005. Infrastructure cost 50.00

Total 100.00

Industry Contribution:-1. Two experts @ Rs 15-20 lakhs/year = Rs 40 Lakhs/year2. 0.5% cess collection = Rs 40 Lakhs/year

Thank You!Society of Indian Automobile Manufacturers

Core-4B, Zone IV5th Floor, India Habitat Centre

New Delhi - 110 003Tel.: 011- 24647810/11/12

Fax: 011- 24648222Email: siam@vsnl.com