Higher import duty on auto components likely to increase burden of industry

A hike in import duty for auto components is likely to increase the burden for the ailing auto industry, which is looking to reverse a one and half year-long slowdown in sales.

Automobile industry executives said they were baffled at the government decision to hike the import duty on catalytic converters and various parts and metals that go into making these.

Industry sales have sagged for about 18 months and prices were anyway rising with the compulsory nationwide switch to the stiffer BS-VI emission standards by April 1. 

The move on converters will make these costlier still.

The duties on converters have been