Gadkari bluntly, If you do not install indigenous parts in the vehicle, then the import duty will be increased


Union Minister Nitin Gadkari on Thursday asked vehicle manufacturers to increase localization in parts to 100 percent. If this does not happen, the government will consider raising the basic import duty to encourage manufacturing at the domestic level of components.

However, the automobile industry has demanded support from the government for the localization of electronic components. In particular, it has been asked to promote the production of semiconductors locally.

Gadkari was speaking at an event organized by the Automotive Component Manufacturers Association of India (EXMA) here. He said that up to 70 percent of local products are used in the manufacturing of automobile sector components in India at present. He said, "We have to stop the import of auto components at any cost."

"I urge both vehicles and auto component manufacturers to buy more and more of the goods used in manufacturing locally." Rather I would say not to get more than 100 percent goods from within the country. We are fully competent in every field. I would like to ask the auto companies to seriously consider this issue, otherwise as far as import of components is concerned, we are considering increasing import duty on them. '

Gadkari said that the government has a clear policy in this matter at all times. We want to promote the policy of products manufactured in India and finished in India. However, earlier speaking at the same ceremony, Indian Vehicle Manufacturing Society (SIAM) President Kenichi Ayukawa demanded support from the government for the local cause of electronic components of vehicles, especially semiconductors. There is a lack of semiconductors in the world at the moment.

Ayukawa said that heavy investment is needed in the field of semiconductors. He said that both Siam and Ekma organizations are working together on an action plan for 'self-reliant' India in the field of auto components.

Gadkari said that whenever he gets an opportunity to have discussions with automobile manufacturers, his suggestion is to never encourage imports.

Gadkari, who is also handling the Ministry of Micro, Small, and Medium Enterprises (MSME) along with the Union Road Transport and Highways, asked manufacturers to focus on reducing costs without compromising on product quality.