Auto industry remains inclined towards China for parts but atmanirbharta echoes

  • India imported auto parts worth $4,063 million from China in 2019-20. This is significantly more than imports from any other country.
  • ACMA underlines its belief in Indian government's 'Atmanirbhar' vision.
To cut back imports from China in the auto component field is an arduous process but any step of promoting local manufacturing has the potential of bringing out several benefits. (File photo for representational purpose.) (REUTERS)
To cut back imports from China in the auto component field is an arduous process but any step of promoting local manufacturing has the potential of bringing out several benefits. (File photo for representational purpose.)

The Indian auto component industry's imports in 2019-20 from China was worth $4,063 million and was once again the largest among all other countries. And while this was a decline of 12% over figures from 2018-19, it was still double than the worth of imports from the next country in the list - South Korea. With the clarion call of 'Atmanirbhar Bharat' (self-sufficient India) form Prime Minister Narendra Modi, however, there is a sense of looking inwards within the industry - a task which may be very difficult but not entirely impossible.

China is the world's largest auto and auto component maker, apart from also being the largest auto market. And by quite a distance. India's imports from the country for automotive component has always been far higher than that from any other country like South Korea, Germany, Japan, United States or even Thailand. And yet, there is a growing understanding that it is about time the industry focuses on reducing imports and begins manufacturing within. "The future of the Indian auto component industry is bright, with GoI focusing on being 'Atmanirbhar' and building global competitiveness," said Deepak Jain, President, Automotive Component Manufacturers Association of India. "Pre-Covid, to create a 'world factory', we had to build scalability, competitiveness and source from across the world. Now, we must de-risk and source internally. We must see a long term road map to develop the Indian market."

Also check these Vehicles

Find more Cars
Honda City Hybrid (HT Auto photo)
Engine Icon1498 cc FuelType IconMultiple
₹ 19 - 20.55 Lakhs
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
Alert Me When Launched
Mg Gloster (HT Auto photo)
Engine Icon1996 cc FuelType IconDiesel
₹ 38.80 - 43.87 Lakhs
Compare
View Offers
Land Rover Range Rover Sport (HT Auto photo)
Engine Icon2993 cc FuelType IconMultiple
₹ 1.64 - 1.84 Cr
Compare
View Offers
Land Rover Discovery Sport (HT Auto photo)
Engine Icon1999 cc FuelType IconMultiple
₹ 65.30 - 67.95 Lakhs
Compare
View Offers
Lexus Nx (HT Auto photo)
Engine Icon2494 cc FuelType IconMultiple
₹ 67.35 - 74.24 Lakhs
Compare
View Offers

ACMA has also made a recommendation to the Indian government on how to possibly ensure a constant supply of components in the automotive sector. "To allow for uninterrupted production in the automotive value chain even during local lockdowns, ACMA has shared a recommendation to GoI to accord the automotive industry with a ‘continuous production industry’ status," said Jain.

This recommendation may have the potential of ensuring that external factors are unable to hinder manufacturing to any extent as was witnessed at the height of India's national lockdown to check spread of Covid-19. At the time, imports from China suffered delays due to lockdowns in that country as well as more stringent checks here.

Additionally, with simmering geo-political tensions between India and China, it is widely agreed that developing local capabilities - whether in the automotive sector or elsewhere too, will have the twin benefits of meeting local needs as well as putting India on the global map as the new manufacturing hub.

First Published Date: 19 Aug 2020, 15:52 PM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.