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The auto industry on Monday urged that the manual inspection of imported consignments from China should be avoided as that is delaying manufacturing of automobiles.
The Society of Indian Automobile Manufacturers (SIAM) and the Automotive Component Manufacturers Association of India (ACMA) have said that this will also further slow down the economy as auto industry is a major contributor to the GDP.
“Inordinate delays in clearance due to congestions at port could eventually impact manufacturing of vehicles in India. The industry is piecing itself together as growth is limping back; any further disruption at this juncture is best avoided,” Rajan Wadhera, President, SIAM, said.
Deepak Jain, President, ACMA, said that delay in inspection of Chinese consignments should be avoided to avoid any hold up in vehicle manufacturing.
“Some of the items imported from China are critical components such as parts of engines and electronics items for which we are yet to develop domestic competence. The automotive value chain is a highly complex, integrated and interdependent one — non-availability of even a single component can, in fact, lead to stoppage of the vehicle manufacturing lines,” said Jain.
The statements came after reports of import consignments from China being subjected to 100 per cent manual inspection resulting in inordinate delays in clearance.
Explaining the complexity of the automotive value chain and the need for unimpeded clearance of imports, Jain informed that the entire automotive value chain in the country is around $118 billion of which import of auto components is $4.75 billion, four per cent of the total auto industry turnover.
“Post the lockdown, production in the component industry is gradually picking up in tandem with growth in vehicles sales, it is therefore in the best interest of the industry and the economy that any further disruptions are best avoided,” he added.
The Indian auto-component industry contributes 2.3 per cent to the GDP and provides employment to five-million people.
The industry witnessed a growth of 14.5 per cent posting a turnover of ₹3,95,902 crore in 2018-19.
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