Auto component manufacturers to increase localisation to 100%
Union Minister asked automobile manufacturers to hike localisation of components to 100% or else the government will think of increasing basic customs duty on imported items, but the auto industry wants support for localisation of electronic parts, specially semiconductors. Speaking at an event organised by the Automotive Components Manufacturers Association of India (ACMA), Minister of Road Transport and Highways, said the present level of localisation of parts in the Indian auto sector is around 70% and "at any cost we need to stop imports of auto components".
The Ministry of Road Transport and Highways will, from now on, also look after the development of Ropeways and Alternate Mobility Solutions. The move is expected to give a boost to the sector, by setting up a regulatory regime, and facilitating research and new technology to come into this sector. An amendment to the Government of India Rules, 1961 has been notified, to enable this step. This means that the Ministry will have responsibility for development of ropeway and alternative mobility solutions technology, as well as construction, research, and policy in this area. Formulation of institutional, financial, and regulatory framework for the technology will also fall under the ambit of this move.
Union Minister for Road Transport and Highways & MSME has urged car manufacturers give priority to the indigenous production of flex engines, which can be used in vehicles using alternative fuels such as ethanol. Meeting a delegation of carmakers from the Society of India Automobile Manufacturers, the Minister said that, with ethanol beginning to be easily available in the country, and more than 70% of gasoline consumption being done by two-wheelers, there is a need to develop indigenous technology for flex fuel vehicles.
With electric vehicles fast becoming the new reality, Union Minister for MSME and Road Transport & Highways has stressed the need to emerge as pioneers in developing leading battery and power-train technologies. Noting that the challenge we presently face is the control on strategic reserves of Lithium, which is used to manufacture Lithium-ion rechargeable batteries used in vehicles, the Minister has called upon the EV sector to shift towards a completely indigenous battery technology in the coming years. This could be metal-air, metal-ion and other potential technologies in the R&D pipeline.
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