The recommendations include several key points: Incentives for capital expenditure, increased depreciation rates, rationalisation of GST rates for electric vehicles, and continuation of successful schemes like the Production Linked Incentive (PLI).
24 Jun 2024 | 2305 Views | By Autocar Pro News Desk
The Automotive Component Manufacturers Association of India (ACMA) has submitted its recommendations for the upcoming Union Budget, highlighting the industry's push for continued growth and innovation in India's burgeoning automotive sector.
ACMA, representing over 800 companies that contribute more than 90% of the auto component industry's turnover in ...
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The Automotive Component Manufacturers Association of India (ACMA) has submitted its recommendations for the upcoming Union Budget, highlighting the industry's push for continued growth and innovation in India's burgeoning automotive sector.
ACMA, representing over 800 companies that contribute more than 90% of the auto component industry's turnover in the organised sector, is at the forefront of shaping policies that could determine the future of India's automotive landscape.
Shradha Suri Marwah, President of ACMA and CMD of Subros Ltd, led the effort to compile and present these recommendations to the Ministry of Finance and the Ministry of Heavy Industries.
"ACMA is looking forward to a growth-oriented budget with continued thrust on reforms and infrastructure development," Marwah stated in a press conference following the submission.
The recommendations include several key points:
These proposals come at a crucial time for India's auto component industry, which has been navigating global supply chain disruptions and the transition towards electric mobility. The sector, valued at $56.5 billion in FY22, is aiming to reach $200 billion by 2026, according to ACMA's projections.
"Schemes such as the PLI have been of great support to the automotive industry, and we are hopeful that such measures will be continued," Marwah added, emphasising the importance of government support in achieving these ambitious targets.
ACMA, established in 1959, has been instrumental in the growth of the Indian auto component industry. The association's focus extends beyond mere component manufacturing to encompass research and development, technology adoption, and quality enhancement.
The auto component sector is a significant contributor to India's manufacturing GDP and provides employment to over 5 million people. With the global automotive industry shifting towards electric and hybrid vehicles, ACMA's recommendations also reflect a push towards sustainability and innovation in this space.
Industry analysts view these recommendations as crucial for maintaining India's competitiveness in the global automotive supply chain. ACMA's proposals, if implemented, could provide the necessary impetus for the industry to meet its ambitious growth targets.
As the government prepares to present the Union Budget, all eyes will be on how these recommendations are received and potentially incorporated. The outcome could significantly impact not just the auto component manufacturers but also the broader automotive ecosystem in India.