SIAM Urges Govt to Raise Import Duty on Commercial Tractors to 40%

The Society of Indian Automobile Manufacturers (SIAM) has asked the government to increase the import duty on commercial tractors and prime movers from 10% to 40%. These vehicles are mainly used for logistics and goods transport. SIAM said the higher duty will help stop low-cost imports from China and support Indian manufacturers.

Low Import Duty Helping Foreign Companies

In its letter to the Ministry of Heavy Industries (MHI), SIAM said the current 10% basic customs duty allows foreign companies to import completely built-up (CBU) EV and ICE commercial tractors and prime movers at lower prices. Since these vehicles are imported as fully built units, foreign brands can sell them in India without setting up manufacturing operations in the country.

SIAM Seeks 40% Duty to Support Indian Manufacturers

SIAM said Indian companies are investing heavily to manufacture EV commercial tractors and prime movers. However, low-cost imported CBUs are making it difficult for domestic manufacturers to compete. The industry body added that the current import duty is encouraging foreign companies to dump their products in India.

To support local manufacturing, SIAM has requested the government to set a uniform 40% import duty, including Basic Customs Duty (BCD) and the Agriculture Infrastructure and Development Cess, on imported CBU commercial vehicles. According to SIAM, this step will help protect Indian manufacturers and encourage them to continue investing in this segment.

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