The government wants domestic car companies to reduce imports of electric vehicle components and other automotive parts from China. Actually, the world's third-largest economic power i.e. India wants to reinvent its supply chain.
NITI Aayog CEO Amitabh Kant said, "Some of the automotive components that are imported from China, especially because of their cheapness, need to be made in the country. We should not become an importer of electric vehicle components, as we have been made in the solar sector.
India has been working on diversifying its supply chain by reducing imports from China. The government wants to reduce the things which are imported on a large scale from China. In this work, they have been engaged since last year's bloody conflict over the border dispute in Galwan Valley.
Here, the global trade tensions with Covid and China have also created situations in which global companies are being forced to shift their manufacturing base from this neighbour of India to reduce their supply chain risk.
Kant said that India is dependent on China for magnets used in electric vehicles, components made from semiconductors and other parts. It needs to be abolished, not reduced. He said this at an event organized by the Automotive Component Manufacturers Association of India.
"Supply chain risk has to be reduced by increasing localisation, reducing dependence on imports. I am talking about China. He said that Indian manufacturing companies should be future-ready. Aim to make a strategic place in the global value chain.
The government is encouraging car companies to shift towards electric vehicles. But due to expensive vehicles and very little charging infrastructure, the speed of shifting is slow from other countries. Electric vehicles account for only 1% of the vehicles sold here every year.
The country's largest car company Maruti does not make electric vehicles due to high costs. In the same event, the company's chairman RC Bhargava said, "The era of electric vehicles will come in the country when the customer will see more benefit in them than other vehicles. It will take time.
Like and Follow us on :
