Millennium Post

Govt considering incentives to boost auto component exports

The government is considering giving incentives to the auto component industry to boost exports, with the Ministry of Commerce and the Department of Heavy Industry conducting a joint assessment of the sector.
'The automobile components industry, particularly exports, are facing a tough time. Both the Ministry of Commerce and Department of Heavy Industry are doing an assessment of the sector with a view to give a push to exports,' said an official.

The auto component sector has been hurt by the slump in automobile demand, in both the domestic and export markets. 'Once the assessment is completed, both the ministries will see if incentives could be given to the sector,' the official added.
The Automotive Component Manufacturers' Association of India has approached the Department of Heavy Industry to take steps for support and address issues such as the high cost of borrowing and rupee depreciation. The outlook (auto components exports) remains uncertain for the current fiscal as there is a weak demand globally.
First quarter passenger vehicles sales have dropped 7.24 per cent from 6,54,858 units in the same period in the previous fiscal.
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