Auto components industry must reduce dependence on imports: Minister HD Kumaraswamy 

The auto components industry must reduce dependence on imports by embracing localisation, Minister of Heavy Industries H D Kumaraswamy said at the 64th ACMA annual convention on September 9. 

According to Kumaraswamy, auto component industry currently contributes 2.7% to India’s GDP and provides employment to over five million people. 

He said despite global challenges and rising logistics costs, the auto components industry thrived with exports increasing this fiscal year. It achieved a significant trade surplus of $300 million, led by higher value addition and increased localisation, Kumaraswamy added. 

“The automotive industry must continue to reduce its dependence on imports by embracing localisation. The government remains fully committed to supporting the industry in adopting next generation technologies and strengthening the domestic supply chain,” Kumaraswamy said. 

Lauding the government’s efforts in this regard, he spoke of the PLI for the automobile and auto components industry, launched in 2021, which has attracted Rs 74,850 crore in proposed investments. “Of this, Rs 17,836 crore has been actually invested by March 2024. This has already generated 30,500 employments this initiative is propelling the auto industry to move up the value chain and into higher valued added products, enhancing our competitiveness globally,” he adds. 

Meanwhile, according to Kumaraswamy, the Electric Mobility Promotion Scheme will continue until the launch of FAME-III (faster adoption for manufacturing of hybrids and electric vehicles). The minister had earlier said that the FAME-III subsidy will be rolled out in the next 1-2 months. 

The government, last month extended the EMPS by two months till September 20, with an enhanced outlay of Rs 778 crore. As the FAME-II subsidy ended in March 31, the government introduced the EMPS Scheme for four months from April 1 to July 31, with an outlay of Rs 500 crore.