Centre recommends imposition of anti-dumping duty on ¡®cast aluminium alloy wheels¡¯

Aluminium alloys industry is set to grow along with India’s automotive sector. India is currently the second largest two-wheel motorized vehicle producer in the world and the seventh-largest automaker.

The Government of India has recommended imposition of anti-dumping duty on ‘cast aluminium alloy wheels’ or ‘alloy road wheels used in Motor Vehicles’, whether or not attached with their accessories, of a size in diameters ranging from 12 inches to 24 inches either manufactured or exported from China, South Korea and Thailand into India.

A Ministry of Commerce notification said that the above countries have exported ‘cast aluminium alloy wheels’ to India below its normal value and have adversely affected the domestic industry and hence the imposition of anti-dumping duty in order to remove injury to the domestic industry.

The above move from the government comes at a time when aluminium alloys industry is set to grow along with India’s automotive sector. India is currently the second largest two-wheel motorized vehicle producer in the world and the seventh-largest automaker. India is expected to become the world’s third-largest auto producer by 2020, with 7 million units annually.

Since 2014 India has been exporting more small cars than Japan, and it will also continue producing such vehicles for its growing middle class. More and more car manufacturers are looking at India and are locating both assembly plants and research and development facilities.

To grow along with the auto industry, aluminium alloy production in India must grow three-fold, from 500,000 metric tons to 1.5 million metric tons of annual production.

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