The Centre has decided to eliminate 252% of the import duty for automobiles brought in to be tested through its institutions, including the International Centre for Automotive Technology and Automotive Research Association of India, to try to stimulate foreign automakers to test their cars in India.
Mahendra Nath Pandey, the minister for heavy industries, has declared that no customs duty will place India on the international stage of vehicle testing. The move is expected to attract automakers from various nations to take advantage of the facilities for testing available in the country. It also will aid in the establishment of a testing center in India. Custom duty exemption will become starting on April 1, 2023.
The minister spoke at the inauguration ceremony of the Conference & Exposition on MHI programs to promote and develop the automobile industry in the country at the International Centre for Automotive Technology (ICAT), Manesar, Haryana. MOS Heavy Industries’ Krishan Gujjar was also present at the ceremony.
“Earlier Custom duty payable for import of vehicles was very high, which in turn makes the test agencies as non-competitive for global business and services but with zero custom duty India will become a global testing hub,” Pandey said. Pandey in an interview.
A crash test of cars was also carried out with the minister present. A vehicle that could travel at 56 km/h was tested crash-proof at the ICAT center. According to reports, the crash tests were completed; Pandey said they currently test the vehicles they try in the UK, Japan, Korea, China, and Taiwan.
Krishan Pal Gujjar highlighted the efforts taken by the department to promote green and clean mobility. In an announcement, the minister explained, “These initiatives will boost domestic manufacturing, help in employment generation, reduce dependence on exports, promote growth and development of the industry, and thereby help in achieving the vision of Atmanirbhar Bharat in the automotive industry.”
