New Delhi: Automobile industry body Society of Indian Automobile Manufacturers (SIAM) said Monday that vehicle manufacturers are staring at production stoppage if the restrictions imposed on domestic manufacturers using imported steel are solved.
Last month, the government had extended the deadline for automobile makers to use Bureau of Indian Standards (BIS) certified locally produced high grade steel till February. However, SIAM had sought a year’s time, expressing their inability to source local high grade steel soon citing inconsistent quality.
“Yes, our production will get hampered if it (restriction) is not resolved. We are making representation to the government of India regarding the matter,” SIAM president Rajan Wadhera told reporters here, Monday.
He further said nearly 90 per cent of the steel used in automobile production is manufactured in India and only around 10 per cent of high grade steel, which is used for meeting safety standards among others, is not manufactured here.
“These are imported from abroad as there is no economy of scale to manufacture these in India. We are talking to the government to resolve the issue,” Wadhera added.
Moreover, Wadhera pointed out that there were issues with the quality and consistency of locally produced high grade steel.
Meanwhile auto industry sources said there was no incentives for foreign steel makers to get BIS certification as volumes are low in India.
In June last year with an aim to promote manufacturing locally, the Steel Ministry had mandated BIS certification for the commodity to be sold in India. For the auto industry, December 17, 2018 was set as the deadline to meet the norm but has been extended till February 17 after automakers raised their concerns over the matter.