NEW DELHI: Union road transport and highways minister Nitin Gadkari on Saturday asked India’s automobile and components industry not to depend on imports and develop local substitutes for products sourced from overseas.
He added that the country’s auto sector has the potential to be the top global manufacturing hub.India imports a large chunk of its auto components with over 25 per cent of it coming from China.
Experts feel it will take a very long time for India to become self reliant in the component space and any blockage of Chinese items would hamper supply chain.
“The government has also taken several steps to encourage Indian companies to export more, and the components sector has an opportunity to take advantage of those measures,” Gadkari said during the annual session of Auto Components Manufacturers Association of India (ACMA).
Automobile makers also pitched the need for localising in India. Suzuki Motor Corporation (SMC) President Toshihiro Suzuki said,
“Localisation in India is now viable as the volumes have increased over the years...would help the companies improve cost competitiveness in India and outside.”
Gadkari also said that the much-awaited vehicle scrappage policy is in its final stages of approval and will be rolled out within a month.
“We will clear this policy with the approval of the highest authorities and we will definitely going to open up this policy, which can be a win-win for Indian manufacturers,” he said.
Meanwhile, Tata Motors MD Guenter Butschek said that regional lockdowns owing to Covid-19 and a shortage of skilled manpower were the new challenges facing the crisis-hit automotive industry.
“I remain cautious about the prospect of long term sustenance in the absence of overall economic recovery. Plus the challenges from COVID-19 are continuing which can possibly create more intermittent
disruptions.” Butschek added.