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India auto component makers against AD duty on stainless steel

It is reported that automotive exhaust system manufacturers and exporters in India, which uses high grade imported stainless steel for producing critical exhaust components for cars and other vehicles, have strongly opposed protested against the proposed levying of anti dumping duty on import of stainless steel.

As per report, union commerce ministry has recently recommended levying of anti dumping duty on import of stainless steel from China, the European Union, the US, Japan, South Korea, Taiwan, South Africa and Thailand. The recommendation comes following a petition by Jindal Stainless to the Directorate General of Anti dumping and Allied Duties which, in turn, has recommended a maximum levy of duty from USD 1,823 a tonne from China on import of cold rolled flat stainless product. The level of such duty on the product varies from country to country.

Mr Yogesh Bhatia VP India at International Tube Association said that "India is major manufacturer and exporter of the critical parts of any automobile exhaust system which includes resonator, catalytic converter, exhaust pipe, muffler, tail pipe, Y pipe and ball flanges. All of these components are especially designed for providing suitable and effective exhaust flow, silencing, and emission levels. All these components are produced with special high grade imported stainless steel not manufactured in India. The one produced by Jindal stainless steel is not approved by International auto companies."

He added that "Exhaust Pipes for automobiles are explicitly engineered to carry or transmit various toxic and noxious gases away from the users of the machine. Usually, exhaust gases are very hot, that is why exhaust pipes must be durable and heat resistant so that it does not get spoiled by heat. These critical components are made from special grade stainless steel as it has potential as a material for automotive components for its high strength to weight ratio for overall weight reduction, good dent performance, corrosion resistance."

Mr Mukul Verma MD of Kuma Stainless Tubes Limited said that "Indian companies manufacture these components for world’s major automobile companies including Suzuki, GM , BMW, Nissan, Vilkswagon, Chrysler, Ford, Mercedes, Volvo, Fiat, Yamaha, Honda, TATA's and Mahindra’s from imported stainless steel. The levies of Dumping duty at behest of a manufacturer not producing high grade of stainless steel with adversely affect the auto component industry in the country."

He added that "India is major player in the global market field of automotive exhaust systems, any attempt to hike the import duty on stainless steel will further hit the industry already reeling due to international recession in the automobile industry."

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