Government will increase custom duty on import of parts if companies does not work seriously towards local manufacturing: Gadkari
Union Road, Transport and Highways Minister Nitin Gadkari said on Thursday that if auto companies do not work seriously towards local manufacturing, the government will increase the custom duty on the import of auto components. Gadkari was speaking at the 6th Automotive Component Manufacturers Association of India (ACMA) Technology Summit.
Gadkari said- I am requesting auto manufacturing companies to take it (localization) very seriously. Otherwise, for the import of components, we will look towards increasing the custom duty on it. This should also be done because it is time for the industry to support the ‘Make in India‘ movement.
Government has already increased import duty
The central government has already increased the basic custom duty on import of automobile parts. The Finance Minister had said that to support domestic industries, it has increased import duty on several auto parts such as electricals, toughened glass and engine parts by 7.5-15%.
This will encourage auto companies to become more local. This will especially help premium and luxury car manufacturers to improve the prices of vehicles, which are more dependent on imported components.
Our goal is 100% localization – Gadkari
Gadkari said that due to the strong capabilities of the component sector, the Indian auto industry has been able to achieve around 70% localization levels. I urge both vehicle and parts manufacturers to increase the local manufacturing of parts as much as possible. I hope to do it 100%.
