Presidents for both ACMA and SIAM have called for a quicker clearance for the Chinese imports as 100% manual inspections of the consignments are leading to uneven production schedules across the automotive industry
The Covid-19 pandemic has resulted increased scrutiny and a 100 % manual inspection of the import consignments from China. This has led to a new problem of inordinate delays in clearance and thus delay in production in the auto indsutry. For the automotive value chain that operates as a highly complex, integrated and interdependent environment, non-availability of even a single component can, in fact, leads to stoppage of the vehicle manufacturing lines.
The entire automotive value chain in the country is around $118 bn of which import of auto components is $4.75 bn, 4 % of the total auto industry turnover. Some of the items imported from China are critical components such as parts of engines and electronics items for which the industry is yet to develop domestic competence.
Deepak Jain, President ACMA, has called for permitting of imports to be cleared and remarked that 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.
Meanwhile, Rajan Wadhera, President - SIAM, has also echoed the voice of ACMA President and said the industry is limping back during the current difficult times and any further disruption such as inordinate delays in clearance due to congestions at port could eventually impact manufacturing of vehicles in India, and thus should be best avoided.