In 2010, vehicle sales in the country was one of the fastest and growing auto markets in the world. Auto component makers have witnessed an increase in sales, but going ahead rising input costs are seen weighing on margins. Auto parts makers want the government's help to upgrade technology and spur investments to boost capacity. At the moment sector don't have enough technology, they are importing technology.
The Auto Component Manufacturers Association (ACMA) has reiterated the need for a technology upgradation and development fund, which was ignored by the finance minister last year. The industry urgently needs a corpus of Rs 7,500 crore to be spent over five years and the industry body has asked for an initial corpus of Rs 1,000 in 2011-12. ACMA has sought 0% import duty on steel and aluminium alloys, which account for almost 60% of raw material costs of auto parts makers.
Natural rubber prices has skyrocketed of late, hitting profitability of rubber goods manufacturers and the industry has asked the government to allow duty free import of 200,000 MT of natural rubber for 2011-12. Even if entire natural rubber production is consumed domestically, the availability of NR will fall short of demand.
Read lot more in Rubber4U – 1st March 2011 issue
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