Now the government is preparing to curb auto components imported from China

New Delhi, Saturday 22 August 2020

The auto sector is gearing up to curb imports and boost domestic production. The government has sought detailed information from automobile manufacturers about investment, imports and localization of the entire value chain. China is the largest supplier of auto parts in India. Transport and Industry Minister Piyush Goyal held a meeting with senior representatives of the auto industry on August 13 on the issue of promoting local partnerships in the automobile sector. And got its review meeting.

The meeting discussed in detail the issue of reducing imports of steel, tires, electronic components and parts of the electric week, sources said. The industry says that according to the automotive mission plan, it aims to sell 65 million vehicles annually by 2026. The industry will inform the government about the needs of domestic production to achieve this goal.

Most imports from China

In FY20, the country imported .4 15.4 billion worth of auto components. China accounted for more than 25 percent. Imports came from South Korea at 14 per cent, Germany at 11 per cent and Japan at 9 per cent. The Commerce Ministry has asked the auto industry to provide accurate information about the company, investment, localization level, exports, imports and royalty payments. The Society of Indian Automobile Manufacturers (SIAM), an organization of the auto industry, has been asked to collect and share data.