Union Minister Nitin Gadkari on Thursday asked automobile manufacturers to increase localization of components to 100 per cent or else the government will consider raising basic customs duty on imports in order to encourage domestic manufacturing of such parts.
Speaking at an event organized by the Automotive Components Manufacturers Association of India (ACMA), the Minister of Road Transport and Highways said the present levels of localization of parts in the Indian auto sector are around 70 per cent and “at any cost, we need to stop imports of auto components”.
“I urge both vehicle and auto component manufacturers to increase localization of components to the maximum. Not maximum, my expectation is to make it 100 per cent. We are fully competent in all things. Even, I am requesting automobile manufacturing companies to take it very seriously otherwise for imports of components we will think in the direction to increase more customs duty on that,” he said.
Stating that the Indian component manufacturers are fully competent and should be given chance to fully supply the required parts, Gadkari said, “Presently my request to all of you is that at any cost we need to stop imports of auto components. This is the time for the Indian auto industry to support the Make in India and Made in India movement.”
Reiterating that the auto sector is a key driver of the Indian economy and a top contributor among the manufacturing sector, the minister asserted that an increase in basic customs duty on select auto components will encourage local manufacturing of such items.