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The auto components expo is currently underway in the national capital after a gap of three years. Over 800 companies from 15 countries are participating.
The expo is showcasing several novel technologies in ADAS, electric mobility and vehicle safety. While the industry leaders are hailing the footfall as more than expected, here’s a round-up of the challenges faced by the industry and their expectations from budget 2023.
Vinnie Mehta, Director General of Automotive Component Manufacturers Association (ACMA) said, “The uniform GST rate on the auto component industry, is 28 percent for 40 percent of the items, we want all our items to be taxed at 18 percent as we are an intermediary industry. In the first half, we grew 30 percent over what we were in the previous year. However strong headwinds continue in terms of supply chain and the semiconductor problem is not yet behind us.”
Sunjay Kapur, President of ACMA said, “Capex cycle has kicked in, Indian industry has increased in terms of numbers. So I can’t specifically say anything about the quantum of capex. If you look at the PLI schemes, they are granted to 67 companies in the auto component industry and the minimum investment will be around Rs 18,000 crore in the next 5 years.”
Sunil Bohra, Group CFO at Uno Minda said, “In our industry, expectations from our customers are always growing. So we have to invest a lot in R&D. We would request the government that we get back the R&D benefit. A unified single tax rate will also help in better compliance.”
Largely appreciative of the government initiatives like the PLI schemes and the FAME scheme, the capex cycle has already kicked in for the auto components industry. While the industry is apprehensive of losing out on exports due to an energy crisis-induced recession in the western world, its wishlist from the government includes SOPs for R&D and a uniform rate of GST.
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