The Indian government plans to put in more curbs on imports from China amid the ongoing border tensions. Around 1,173 non-essential products, including steel products and auto components from China, could face tighter import restrictions, according to media reports.
But automakers, including Maruti Suzuki, feel weaning off China without alternative arrangements could impact the industry and harm the cost competitiveness. For companies to make their production switch to India, costs need to be lowered. The Auto Component Manufacturers’ Association of India (ACMA) estimates over a quarter of parts came from China in 2019.
ACMA members, however, are already looking to secure their supply chains and reduce dependence on parts imported from China.