Dependency on imports must stop: Kan

The Indian automobile and components industry must eliminate its import dependence on China for a host of automotive parts and must focus on localisation of such items, Niti Aayog chief executive Amitabh Kant said on Thursday.

Speaking at the 61st Annual Session of Automotive Component Manufacturers Association of India (ACMA), he said electric four-wheelers will also be considered for incentives under the Fame II scheme, once there is 100% saturation of electric buses in the nine cities selected under the programme.

“A wide array of disruptions, such as global supply chain rebalancing, government incentives to increase exports and technology disruptions are creating opportunities at all levels of the automotive value chain. These must be seen as opportunities. It is very important that industry participants see a clear highway and it is time for the industry to drive the machine at full throttle,” Kant said.

Asserting that the approach to Make in India is very clear, he said localisation has to be boosted. “... Reduce dependency on imports, and I would like to say from China,” he said.

Asking the automotive industry to focus on “low hanging fruits that could be localised in a short period”, he said, the localising of mechanical parts, such as forged and machined components and lightweight polymerbased parts is critical.

“It is also important that tain automatic compone which are being imported f China purely on the back of competitiveness and deve ment capabilities, need t manufactured here,” he no

Kant also told the indu that certain parts that required to meet BS-VI emis regulations such as electr fuel injection systems and c lytic converters which sourced from China “will ne see increased localisation the next two quarters”.