Union Minister Nitin Gadkari on Thursday asked automobile manufacturers to hike localization of components to 100 percent, otherwise, the government will think of increasing basic customs duty on imported items, but the auto industry wants support for localization of electronic parts, especially semiconductors.

Speaking at an event organized by the Automotive Components Manufacturers Association of India (ACMA), Gadkari, Minister of Road Transport and Highways, said the present level of localization of parts in the Indian auto sector is around 70 percent and ''at any cost we need to stop imports of auto components''.

''I urge both vehicle and auto component manufacturers to increase localization of components to the maximum. Not maximum, I expect to make it 100 percent. We are fully competent in all things. Even, I am requesting automobile manufacturing companies to take it very seriously otherwise for imports of components we will think in the direction to increase more customs duty on that,'' he said.

Earlier in the day, the Society of Indian Automobile Manufacturers (SIAM) President Kenichi Ayukawa, while speaking at the same event, sought government support for localization of electronic components, especially semiconductors, which are currently facing a global shortage, stating it would need huge investments.

Ayukawa said SIAM and Automotive Components Manufacturers Association of India (ACMA) are working together on a road map for 'Aaatmanirbhar' for more localization of components.

''Together we have identified specific areas of engine transmission, electrical tooling, the grade of steel, etc. that have good scope for localization,'' he said.

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