FCC

Auto sector specifies 28 parts for import cut

2024-05-09

Rajesh Menon, the director-general of the Society of Indian Automobile Manufacturers (SIAM), mentioned that India?s automobile sector had recognized 28 crucial components for indigenisation as part of the ?localisation roadmap? aimed at expediting the ?Make in India? initiative. He emphasised that these components were vital for sustaining the growth momentum. He further stated that the ongoing efforts in localization had already resulted in substantial forex savings of over Rs 70 billion.

Menon conveyed that in response, original equipment manufacturers (OEMs) had urged their component suppliers to explore methods for local manufacturing of these components, including high-end electrical and electronic parts. He highlighted that the availability of locally sourced components would diminish the reliance of OEMs on imports, aligning with the auto industry?s dedication to ?Atma Nirbharta? (self-reliance), while simultaneously boosting the export potential of the component industry.

Moreover, Menon noted that the Production Linked Incentive (PLI) schemes for the automotive sector were acting as a catalyst for the localisation of advanced auto components. He indicated that these schemes had already begun fostering the requisite ecosystem for companies to invest in and produce in India.