Auto Industry Appeals to Steel Ministry to Relax Import Bans As Production Threatened

Indian automobile industry has requested the Ministry of Steel to remove the restrictions on steel imports that might create a disturbance in vehicle production. The industry has approached the government on DEC 13, including members from the Automotive Components Manufacturers Association (ACMA) and the Society of Indian Automobile Manufacturers (SIAM).

ACMA Director General Vinnie Mehta said the government has imposed very stringent restriction on steel imports as foreign shipments shot up. Though ACMA agrees to the push for localization by QCOs, it would say that automotive steel constitutes a miniscule five per cent of the total. There are instances where imports involve few kilos of specialized steel grades, which cannot make the case for localization.

The current process requires manufacturers to obtain a No Objection Certificate (NOC) from the government to import specific steel grades covered by QCOs. However, Mehta mentioned that NOCs are not being issued promptly, and there is a possibility of slowing down production. Both ACMA and SIAM have submitted representations to the Ministry of Steel and the Ministry of Heavy Industries requesting a resolution.

The auto sector is under great pressure as some manufacturers have already said that their critical grades of steel are reaching critically low levels, and this might make them stop production. Mehta hoped that with a common minister in both the ministries, the decision-making process will get expedited. He stated that the industry was keen on localization, but there were a few grades that needed imports.

ACMA and SIAM are waiting to hear a positive response from the government, as it is of utmost importance to have the continuity of production in the automotive sector. The industry urges the government to address these issues at the earliest, lest there be further disruption in the country.