Automotive Component Manufacturers Association of India (ACMA) further sought creation of a fund to support indigenous research and development (R&D) and technology creation in the component industry.
Auto component industry today sought uniform 18 percent GST across the sector stating that low taxation would lead to better compliance and and larger tax base. The industry, which reported a growth of 18.3 percent to Rs 3.45 lakh crore in 2017-18, said the lower tax levy would also help in curtailing flourishing of grey operations in the aftermarket.
“One of the key demands of the industry has been a uniform 18 percent GST rate across the auto component sector. Currently 60 percent of the components attract 18 percent GST rate, while the rest 40 percent, majority of which are two-wheelers, and tractor components attract 28 percent,” ACMA President Nirmal Minda told reporters here.
Automotive Component Manufacturers Association of India (ACMA) further sought creation of a fund to support indigenous research and development (R&D) and technology creation in the component industry.
“There is a critical need for creating a fund to support indigenous R&D and technology creation in the component industry as also for technology acquisition from other parts of the world,” he added.
Besides, it also sought a clear technology agnostic road map for the electric mobility in the country.
“As we prepare for the introduction of electric mobility in the country, a well-defined, technology agnostic road map with clear responsibilities of each stakeholder will go a long way in ensuring a smooth roll out as also leading to creation of a local supply base for the same,” Minda said.
The industry body also advocated for notification for change in the micro, small and medium enterprises (MSME) definition as that would allow for larger number of companies to avail government incentives.
Commenting on the performance of the auto component industry, ACMA Director General Vinnie Mehta said 2017-18 witnessed an upswing in the overall performance of the vehicle industry, despite it facing several regulatory challenges.
The component industry, in tandem, posted an encouraging performance with significant growth of 18.3 percent over the previous fiscal, registering a turnover of Rs 3,45,635 crore (USD 51.2 billion), he added.
Further exports, grew by 23.9 percent in 2017-18 to Rs 90,571 crore (USD 13.5 billion), he added.
The automotive component industry contributes 2.3 percent to India’s GDP and has a share of 4 percent in the country’s overall exports.
