The 2021-22 Union budget proposes a 15% increase on import duty on automobile components such as drive transmissions, chassis, brakes and steering.
The Union Minister for Road Transport has stated that the government could hike custom duty on auto parts in a bid to promote domestic production.
The Minster was addressing the annual technology summit of the Automotive Component Manufacturers Association (ACMA), when he made the remark about increasing local production under the ‘Atmanirbhar Bharat’ initiative. It has been reported that the auto sector has been able to achieve a localisation level of around 70%.
The 2021-22 Union budget proposes a 15% increase on import duty on automobile components such as drive transmissions, chassis, brakes and steering. While announcing the budget, the Finance Minister had stated that these components are not critical for an automobile and are also available locally.
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