Imports of Chinese auto parts to hit an increase in customs duty

NEW DELHI: The increase in tariffs by car parts will mainly impact the $ 4.5 billion Chinese auto component imports into India, which account for nearly a fourth of the total $17-billion auto parts import bill. This segment, which also dominates the after market, has been growing at 8%, said ACMA sources.

He said Rico Auto MD Arvind Kapur, “The increase in customs duty on selected auto parts from 7.5% to 10% and 10% to 15% will impact Chinese imports in the after market because Indian components are already cheaper than Japanese, European and Korean parts , and OEMs tend to source locally.”