The Centre has opted to lift 252% of the import duty for vehicles tested in its offices, such as the International Centre for Automotive Technology and Automotive Research Association of India, to try to stimulate foreign automakers to test their cars in India.
Mahendra Nath Pandey, who is the minister of industrial heavy industry, stated that there is no custom duty that will be able to place India into the global market of testing cars. This will draw automobile makers from other nations to take advantage of the facilities for testing available in India and will aid in establishing a testing center in India. Custom duty exemption will go into effect from April 1st, 2023.
The minister spoke at the opening ceremony of the Conference & Exposition on MHI programs to promote the growth and improvement of the automobile manufacturing industry in the country at the International Centre for Automotive Technology (ICAT), Manesar, Haryana. The MoS Heavy Industries’ Krishan Pal Gujjar was also at the ceremony.
“Earlier Custom duty payable for import of vehicles was very high, which in turn makes the test agencies as non-competitive for global business and services but with zero custom duty India will become a global testing hub,” Pandey said. Pandey in an announcement.
A crash test of cars was also conducted with the minister present. A vehicle that could travel at 56 km/h was tested crash-proof at the ICAT center. According to reports, after the test crash, Pandey said they currently try their automobiles in the UK, Japan, Korea, China, and Taiwan.
Highlighted the department’s initiatives to encourage clean and sustainable mobility. In an announcement, the minister explained, “These initiatives will boost domestic manufacturing, help in employment generation, reduce dependence on exports, promote growth and development of the industry, and thereby help in achieving the vision of Atmanirbhar Bharat in the automotive industry.”
Contributing 7.1 percent to the GDP of India and 49 percent of the GDP generated by manufacturing, India’s auto industry is among the fastest-growing sectors in the world. India is also the fourth-largest automotive market globally and is predicted to be the third-largest in terms of sales volume in FY26. While the auto industry was at its most vulnerable to epidemic disruption, it has rebounded slowly. With the renewed focus of India on the reduction of carbon emissions after the United Nations Framework Convention on Climate Change (COP 27 Summit), The automobile industry has morphed rapidly, passing through ebbs and flows within only a few days.
Today, following a rollercoaster experience, the mobility sector has seen a radical shift in its outlook compared to only a few years prior. It’s not a reason to be surprised that 2022 is a boom year for businesses across all verticals, and the mobility industry is no different. It was an important year of change as well as learning and growth in the field, which plays an essential function in our daily lives. The nature of the business has changed on every front.