India open to raising duties on auto imports to boost local production

  • Commerce Minister Piyush Goyal said raising duties was not a bad idea to discourage automakers from importing car kits.
File photo used for representational purpose only (REUTERS)
File photo used for representational purpose only

India is open to raising duties on auto imports in a phased manner in a bid to boost domestic production, a minister said on Friday, as the country's car industry set a target to halve imports of components within five years.

Commerce Minister Piyush Goyal said raising duties was "not a bad idea" to discourage automakers from importing car kits, comprised of partially or completely knocked down vehicles, and using India only as an assembly base to get market share there.

Also check these Vehicles

Find more Cars
Mahindra Xuv300 (HT Auto photo)
Engine Icon1497.0 cc FuelType IconMultiple
₹ 7.99 - 14.76 Lakhs
Compare
View Offers
Mahindra Xuv700 (HT Auto photo)
Engine Icon2184.0 cc FuelType IconMultiple
₹ 13.99 - 26.99 Lakhs
Compare
View Offers
Mahindra Xuv900 (HT Auto photo)
UPCOMING
Engine Icon2498 cc FuelType IconDiesel
₹ 25 Lakhs
Alert Me When Launched
Mahindra Xuv500 2024 (HT Auto photo)
UPCOMING
Engine Icon2179 cc FuelType IconDiesel
₹ 12 Lakhs
Alert Me When Launched
Mahindra Xuv300 2024 (HT Auto photo)
UPCOMING
Engine Icon1197 cc FuelType IconPetrol
₹ 9 - 15 Lakhs
Alert Me When Launched
Mahindra Bolero 2024 (HT Auto photo)
UPCOMING
Engine Icon1999 cc FuelType IconDiesel
₹ 10 Lakhs
Alert Me When Launched

"We may look at something like a phased manufacturing plan. I will be open to suggestions," he said during an event organised by the Society of Indian Automobile Manufacturers (SIAM).

Prime Minister Narendra Modi's government wants companies to reduce imports, increase domestic production and play a bigger role in the global supply chain in an effort to make the country more self-reliant.

Also Read : Be 'AtmaNirbhar', aim for global dominance: Piyush Goyal to Indian carmakers

India's auto sector imports $13.7 billion worth of components annually.

Pawan Goenka, managing director of Mahindra & Mahindra, one of India's biggest automakers, told the same event that SIAM and the Auto Component Manufacturers Association of India had agreed to set a target reduce the total value of imported components by half in the next four to five years.

The focus will be to reduce imports of electronic auto components, which are sourced mainly from China and other Asian countries, as well as steel, Goenka said, adding these two together account for around $5 billion of total auto parts imports.

India's auto sector, which was already reeling from a slowdown in demand last year, has been further hit by the pandemic and carmakers are seeking government support to push sales.

Also Read : Piyush Goyal asks Maruti, Hyundai and others to pay less royalty to parent firms)

Automakers want the government to defer the introduction of stricter fuel efficiency and emission norms and are seeking a temporary 10% cut in taxes on vehicles.

India's heavy industries minister Prakash Javadekar told the event that while the government may not agree immediately to a tax cut he would take up the request with other ministers. He also reiterated that a long-due vehicle scrappage policy would be out "very soon".

First Published Date: 05 Sep 2020, 11:47 AM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city

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.