SIAM, ACMA fear impact on vehicle production due to delay in imports clearance, here’s why

SIAM says that amid border tensions with China, all consignments imported from the neighbouring country are reportedly being subjected to 100% manual inspection, resulting in inordinate delays in clearance. Here is how this can impact vehicle production.

By:Updated: Jun 30, 2020 10:20 AM

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Automotive industry bodies SIAM and ACMA on Monday sought timely clearance of imports in ports, stressing that inordinate delay in port clearances across the country, due to manual inspections, would put further pressure on the industry in terms of manufacturing. Society of Indian Automobile Manufacturers (SIAM) president Rajan Wadhera said, “Inordinate delays in clearance due to congestions in ports 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.” Amid heightened border tensions with China, all consignments imported from the neighbouring country are reportedly being subjected to 100% manual inspection, based on intelligence inputs, resulting in inordinate delays in clearance, he said.

Automotive Component Manufacturers Association of India (ACMA) president Deepak Jain, in a note, said, “The auto component industry in India is committed to the ‘Atmanirbhar Bharat’ vision of the Prime Minister. The entire automotive value chain in the country is around $118 billion of which imports of auto components are at $4.75 billion, 4% of the total auto industry turnover. Some of the items imported from China are critical, 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. 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,” Jain added.

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