A Performance Linked Incentive (PLI) scheme for export promotion is needed to generate demand, said Kenichi Ayukawa, MD & CEO, Maruti Suzuki India and SIAM President.
Ayukawa spoke at the 60th ACMA Annual Session which was held virtually.
The scheme such as PLI envisages to provide manufacturing and export incentives to companies.
Requesting, the Centre to help the industry in creating demand, Ayukawa asked Niti Aayog CEO Amitabh Kant for support.
Kant was attending the session in which Ayukawa spoke.
He requested Kant "to help us in creating demand".
Ayukawa listed steps such as PLI scheme for exports, GST rate reduction and the 'Scrappage Incentive' scheme for domestic demand that can aide the sector in attracting demand.
"The 'Scrappage Incentive' scheme for domestic demand can be a big support from your side in these challenging times," he said.
Besides, he requested the auto components manufacturers for maximum localisation of inner parts and raw material to build 'Self-Reliant India'.
"There is opportunity in adversity. Many companies in China are relocating or putting plants in other countries to cover geo-political risk," he said.
"We should bring those investments to India or tie-up with them to produce in India. I will make efforts to organise some business exploration meetings with manufacturers of Japan to increase 'Make in India'."
"Similarly we could do with other countries like Europe or Korea or USA."
According to Ayukawa, SIAM's sourcing group has identified four categories of components where imports should be converted to local.
"These are Electronics, some grades of Steel, Tooling and EV components. We would request you to take leadership and assume responsibility for localisation of these components," he said.
"If we are able to achieve this, India will become very powerful for exports also. If you can produce ventilators and PPE in two months, I am confident you can achieve auto component localisation also. If there are challenges, I am sure Niti Aayog and the government will try to help us, as it is an important national objective also."
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)