Auto -components Makers are not worried about American rates, Conditions IT -transition phase

The Indian car component industry is not unnecessary about the implications of American rates for products from India, although it has an impact on ‘some persistent’ of customers there in the short term because of the uncertainty, said civil servants of ACMA Friday.

Given the current rate situation with the US, they said that the India-EU FTA is becoming even more important, and it is a need to deepen the involvement of India in Europe.

In the last financial year, the export from India’s Auto Components to the US at USD 6.6 billion, from which USD was 3.5 billion in components for cars and small trucks, and now have a rate of 25 percent. Another USD 3 billion from components for commercial vehicles, off-road vehicles, tractors and construction equipment are now at 50 percent rate, automotive component Manufacturers Association of India (ACMA) general Vinnie Mehta told reporters.

“(Exporteert) naar de VS is USD 6,6 miljard van de USD 22 miljard, wat betekent dat er ook een grote alternatieve markt is die ook beschikbaar is voor de industrie. De industrie heeft gebouwd, gebaseerd op risicobeperking, klanten, klanten, enzovoort,” ACMA President Designate, Vikrampati Singhania, zei wanneer de componenten makers zijn die momenteel in een praktische power van een praktische power -out van een Being practical power in a practical power -out of a practical power -out of a practical power -out of the present.

Singhania, who is also the director, JK Fenner (India) LTD, emphasized the need to look at the current American tariff situation of India “compared to the rate of any other country”, focusing on improving the competitiveness of domestic companies.

“We don’t have to see 25 percent as 25 percent. We have to see that other countries are 25 percent or 19 percent or at lower rates. It is a difference that the real point is to think about. Don’t think about it, because we were 2.5 percent and we are now 25 percent, (because) so most other countries we are fighting in the global landscape,” he claims. Indian companies have worked and looked at alternative markets as part of a strategy and an agenda, Singhania added. ACMA President Shradha Suri Marwah also repeated that it is the USD 3.5 billion segment “that is currently being hit at 50 percent”.

Asked whether customers in the US have stopped purchases from Indian component makers, she said: “There is something stuck. I would say … are they moved to alternative markets? It’s not that simple because these are long -term developments. There are technology, there have been in it.”

Mehta said: “In the first quarter – April, May, June, our export and import figures exactly correspond to USD 1.77 billion of what we did in the previous financial year … there has been absolutely no impact.”

Marwah explains that negotiations are underway on a commercial basis: “I think everyone is waiting and watching, because nobody really knows what will happen tomorrow. That is where we are now.”

Singhania, however, said: “This is a transition phase, and I think both countries have a great relationship … This is not the end. It is the start of many conversations that will lead to where we both desire we are.”

On the proposed free trade agreement of India with the EU, said Mehta, it is “enormously important to us because the European Union is such a huge market for us as the US. Now with the American market under much cloud, we want to deepen our involvement in the European Union.”

Trade with the EU is very well balanced, whereby India exports USD 6.7 billion in automatic components to the EU and is a value of 5.7 billion in USD automatic components.

“There is one giving and taking that happens. That is why it makes sense to lower trade barriers. That the European Union is also a huge treasure home of many technologies. We would like technology investments in the country from Europe,” Mehta noted.