ACMA for options on export target

ACMA also asked the Industry Ministry to draw an automotive policy document in consultation with the both the vehicle and the component manufacturers. ACMA said that the policy document is must since it gives a fair idea to an investor. Other developing nations like China and Malaysia already have it.

The Industry Ministry asked ACMA to give a blueprint for increasing automotive component exports from 270 million annually to 1 billion annually. quot;Once we present this blueprint then the ministry will consider specific needs of the industry,quot; informed ACMA president K Mahesh.

The Association has urged the government to consider reduction of the excise duty on automobiles from 40 per cent to 20 per cent, since this will help the volume to grow substantially. To support this issue ACMA cited the example of Brazil where the excise duty on automobiles was brought down from the 20 to 8 per cent, which lead shot the demand by 60 per cent.

At the meeting, ACMA highlighted other problems faced by the automotive industry. ACMA drew the government8217;s attention to the problem of spurious parts.