The domestic auto industry has identified 50 critical components for local production in order to reduce import dependence, Society of Indian Automobile Manufacturers SIAM president Vinod Aggarwal said on Monday. Since most of these items are electrical or electronics, there is a need to develop capabilities and capacities in India for such high tech items, he added.
Speaking at the 64th annual ACMA session, Aggarwal said that SIAM along with ACMA has voluntarily set targets for increasing localisation.
“It was committed to reduce import content by 60% to 20% by 2025 from the base 2019-20 levels, thereby targeting the reduced reports to the tune of Rs 20,000 to Rs 25,000 crore in five years. We have very well achieved the first phase of import reduction of 5.8% in first two years,” Aggarwal said.
He said that the domestic automotive industry has crossed Rs 20 lakh crore mark in FY24 and now contributes 14-15% of the total GST collected in the country.
Aggarwal said that India has become the third largest passenger vehicle market, the largest two and three wheeler market and third largest commercial vehicle market, and the industry is poised to grow even faster.
