Going local a bigger challenge than expected for the automobile industry

Weaning the auto-components industry off Chinese imports will be a bigger challenge than what the government expects

Last month after 20 Indian soldiers were killed in a border clash with China, one of the immediate reactions from the government was to ask Indian manufacturers — including automobile, pharma, leather, electronics, textiles and others — to cut imports from China. As with other sectors, this is easier said than done for the $118 billion automobile industry.

The fact remains that the Indian auto industry’s dependence on China is high and it will continue to be so in the BS-VI era and as the country moves towards electric mobility.

Last year, auto components worth around $17 billion were imported