Auto industry lobbies appeal against 100% inspection of Chinese imports

According to the Automotive Component Manufacturers Association of India (ACMA) import consignments from China were being subjected to one-hundred per cent manual inspection resulting in inordinate delays in clearance.

MUMBAI: Two of the top automotive industry lobbies on Monday appealed to the government against the 100% manual inspection of Chinese goods at ports because it was hurting the industry’s production schedules at a time when companies were trying to get their supply chains back in order after the lockdown to contain the coronavirus pandemic.

“Inordinate delays in clearance due to congestions at port could eventually impact manufacturing of vehicles in India. The industry is piecing itself together as growth is limping back; any further disruption at this juncture is best avoided,” said Rajan Wadhera, president of Society of Indian Automotive Manufacturers (SIAM), a lobby of automakers.

Explaining the complexity of the automotive value chain, Deepak Jain, president of Automotive Component Manufacturers Association of India (ACMA) said, “Some of the items imported from China are critical components, such as parts of engines and electronics items for which we are yet to develop domestic competence. The automotive value chain is a highly complex, integrated and interdependent one; non-availability of even a single component can, in fact, lead to stoppage of the vehicle manufacturing lines.”


ACMA is a lobby of automotive component makers.

Imported auto components amounted to $4.75 billion annually, Jain said, or about 4% of the $118-billion annual turnover of the automotive industry in the country.

“Post the lockdown, production in the component industry is gradually picking up in tandem with growth in vehicles sales. It is therefore in the best interest of the industry and the economy that any further disruptions are best avoided,” he said.
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