Nitin Gadkari Urges Auto Manufacturers to Boost Localisation, Reduce Import Dependence for Components

Road transport and highways minister Nitin Gadkari on Wednesday called upon automobile manufacturers to enhance localisation and elevate manufacturing quality standards, rather than depending on imported components, according to a report by the Economic Times. The minister stated that international automotive companies are progressively utilising India as an export base, referencing the two-wheeler sector, where approximately 50 per cent of production is exported to overseas markets. He noted that a comparable pattern is emerging amongst passenger vehicle manufacturers as well.

"Major car makers have started using India as an export base," Gadkari was quoted as saying.

Indian Auto Components Give Competitive Advantage

According to the minister, Indian automotive components are competitively priced and satisfy global quality benchmarks, making them an appealing choice for international car companies.

"Indian auto parts are competitively priced and meet global quality standards. Global car companies have no option but to buy from them because of the value proposition," he said.

Environmental Concerns Drive Push for Cleaner Technologies

Gadkari also emphasised the automotive sector's role in addressing environmental challenges, particularly in urban areas. Referring to air quality in the national capital, he stated that approximately 40 per cent of pollution originates from vehicular emissions, highlighting the necessity for cleaner technologies and enhanced manufacturing practices.

The minister's comments arrive during the government's drive for increased domestic value addition in manufacturing and initiatives to establish India as a global automotive production and export centre.