The Indian aluminium industry is seeking duty adjustments on imports and input material used in aluminium production to secure domestic market and drive investments in run up to Budget 2025. Leading industry associations, including the Aluminium Association of India (AAI) and the Federation of Indian Mineral Industries (FIMI), have separately submitted their pre-budget recommendations to the Ministry of Finance (Government of India), urging policy changes to strengthen India’s aluminium industry.

As India strives towards becoming a ‘Viksit Bharat’ by 2047, the associations emphasise aluminium's vital role in economic growth, with extensive applications across defence, infrastructure, electric vehicles and renewable energy.

Stating that the surge in primary aluminium and low-grade scrap imports, particularly from countries with excess capacity like China, has disrupted the domestic market and deterred investment in local production, the AAI has suggested raising of import duties on primary aluminium from 7.5 per cent to 10 per cent; from 7.5 per cent to 12.5 per cent in the case of downstream aluminium, and to set aluminium scrap duties at 7.5 percent to curb low-quality scrap inflow and support domestic recycling efforts.

FIMI has called for an increase in primary/downstream aluminium import duties to 12.5 percent along with raising aluminium scrap duties from 2.5 percent to 7.5 percent or higher.

Of the opinion that high duties on essential raw materials have created an inverted duty structure, adding costs for domestic aluminium producers, sources close to the aluminium industry in the country have expressed that a reduction in custom duty on several materials could help to address this.

GIMI has also recommended reduction of customs duty on several materials such as Calcined Petroleum Coke from 7.5 percent to 2.5 percent; to eliminate the duty on Caustic Soda Lye and to lower Aluminium Fluoride duty to 2.5 percent.

By rationalising these input tariffs, the industry could reduce production costs by up to 17 percent, bringing Indian aluminium production closer to global cost standards and enhancing its competitiveness.

The aluminium industry is also impacted by high energy costs due to the GST Compensation Cess of INR 400 per metric tonne on coal.

FIMI has recommended removing this ‘cess’ or allowing it as an offset against green compliance costs, which would reduce operational costs and support the industry’s shift towards sustainable practices.

India holds a strategic advantage with the world’s seventh-largest bauxite reserves and fifth-largest coal reserves. Yet, despite India’s per capita aluminium consumption remaining low at 3 kg per annum, well below the global average of 12 kg. The industry faces significant hurdles in attracting fresh investments despite the domestic demand projected to reach 10 MTPA by 2030. While the industry has already invested over US $20 billion to expand capacity to 4.2 MTPA, an additional US $40 billion will be required over the next six years that will help meet rising demand.

Image for representative purpose only.

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SABIC (Saudi Basic Industries Corporation), one of the largest petrochemicals manufacturers globally, has signed a Memorandum of Understanding with CEER, Saudi Arabia's electric vehicle brand, to explore cooperation in applying SABIC's materials and solutions in the design, development and manufacture of electric vehicles.

The signing ceremony took place at SABIC's headquarters in Riyadh, with attendance from SABIC CEO Dr. Faisal M. Alfaqeer and CEER CEO James DeLuca.

The agreement establishes a framework for evaluating the use of SABIC materials in EV applications and jointly developing material and processing solutions. The collaboration also covers knowledge sharing on sustainability and technology, exploring strategic sourcing opportunities to build a local supply chain and identifying joint areas of cooperation.

Dr. Al-Faqeer, said, “The memorandum represents a strategic collaboration which leverages SABIC’s global expertise in advanced material solutions for the electric vehicle industry. Through this partnership, we aim to accelerate innovation, enhance local content and build an integrated national supply chain that enhances global competitiveness. This collaboration also reflects our shared commitment to contribute to Saudi Vision 2030 and the National Industrial Strategy, empowering national talent, and strengthening Saudi Arabia’s position as a regional hub for future industries and technologies.”

James DeLuca, said, “This strategic collaboration with SABIC marks a significant step in CEER's journey toward designing, engineering and manufacturing a world-class electric vehicle right here in the Kingdom of Saudi Arabia. In order to develop next-generation electric vehicles with leading safety and efficiency performance, we are partnering with global prominent companies that share our commitment to innovation. By integrating SABIC’s materials and deep technical expertise into our vehicles, we are building a robust and reliable local supply chain while enhancing CEER’s rule as a key player in the Kingdom’s transformation into sustainable advanced hub for mobility and technology, in alignment with the goals of Saudi Vision 2030.”

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TAFE Motors and Tractors has opened its DEUTZ engine production facility at its manufacturing plant in Alwar, Rajasthan. The facility was inaugurated by Colonel Rajyavardhan Singh Rathore, Minister for Industry & Commerce, Government of Rajasthan.

Under a licensing agreement with DEUTZ, TAFE Motors will manufacture 2.2-litre and 2.9-litre engines for domestic and international markets, targeting an annual production capacity of 35,000 engines and 50,000 sub-assemblies. The manufacturing setup incorporates Industry 4.0-enabled systems and digital connectivity.

Rajasthan’s Cabinet Minister, Rajyavardhan Singh Rathore, while addressing the gathering lauded TAFE's investment in the state, said, “TAFE’s new production facility at Alwar is a strong endorsement of Rajasthan's emergence as a preferred manufacturing destination and exemplifies the vision of 'Made in Rajasthan for the World' while contributing to the national goal of an Aatmanirbhar Bharat. I reaffirm the state's commitment to fostering a business-friendly ecosystem through progressive policies and ease of doing business. I also commend TAFE’s Chairman & Managing Director, Mallika Srinivasan for her visionary leadership and contributions to nation-building, and I appreciate the commitment of TAFE's workforce, supply chain partners, and next-generation leadership in driving innovation, skilling, and empowering India's farmers through world-class technology and manufacturing excellence”

Mallika Srinivasan, Chairman & Managing Director, TAFE, said, "Today marks a defining milestone in TAFE's growth journey. TAFE and the Amalgamations Group, together are one of India’s largest engine manufacturing ecosystems, with a production capacity projected to expand from 400,000 to 550,000 engines annually by 2030.”

She added, “Our partnership with DEUTZ, one of Europe's premier engine manufacturers and a pioneer in diesel engine technology brings together the precision of German engineering and the strength of India's manufacturing capabilities. This venture will also serve as a growth catalyst for the allied engineering industries in Rajasthan, further strengthening the state's position as a manufacturing hub. We extend our gratitude to the Government of Rajasthan for the continued support in enabling this landmark initiative."

Dr Lakshmi Venu, Vice Chairman, TAFE, said, " India's manufacturing sector is entering a new phase, driven by technology, operational excellence and globally benchmarked capabilities. The TAFE Motors - Deutz production facility reflects our commitment to and investments in, advanced manufacturing rigorous quality systems and continuous capability development that will enable us to respond to an evolving India and International market demand. With a 40 percent women workforce, the TAFE-DEUTZ production facility continues to advance gender diversity goals."

Sandeep Sinha, Chief Executive Officer, TAFE, said, " The TAFE-Deutz facility integrates high levels of automation across manufacturing, testing and logistics, along with vision systems, robotics and cobots for critical assembly functions and reaffirms our ability to manufacture world-class products at scale. We are creating a world-class platform that will deliver exceptional value to customers in India and across international markets. Further, the facility also incorporates a state-of-the art engine testing and an advanced quality laboratory with complete digital traceability to ensure global quality standards."

Dr. Sebastian Schulte, Chief Executive Officer, Deutz, said, “The inauguration of the new DEUTZ engine assembly line in Alwar marks an important milestone in our cooperation with TAFE. It reflects the commitment and strong collaboration of both teams in turning our shared vision into industrial reality.”

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Czech automaker Skoda Auto has produced its one millionth Karoq SUV - a Karoq 1.5 TSI 110 kW finished in Graphite Grey - from its Kvasiny plant.

Since its launch in 2017, the Karoq has been built at the Kvasiny facility, which also produces the Octavia and Kodiaq, and maintains an annual production capacity exceeding 300,000 vehicles. The successor model is scheduled to be unveiled by CY2028.

Andreas Dick, Responsible for Production and Logistics at Skoda Auto, said, “Since production began in 2017, the Skoda Karoq has become an established part of our portfolio and an especially important model for the Kvasiny plant. Reaching the one-million mark reflects the commitment and teamwork of many people over the years. I would like to thank all colleagues in Kvasiny for their dedication, as well as our social partner KOVO for our long-standing, constructive and trusted cooperation.”

The Karoq is sold in around 60 markets, with Germany, the Czech Republic and the United Kingdom serving as its primary markets. The model range includes petrol and diesel engines with power outputs ranging from 85 to 140 kW. As per the company, 73 percent of Karoq buyers select an automatic transmission, while 27 percent choose a manual transmission.

In 2025, the Kvasiny plant manufactured 301,500 vehicles, and production of the Octavia Combi was added to the site in May 2026.

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Zelio E-Mobility, an electric two-wheeler company, has opened its new manufacturing facility in Coimbatore, Tamil Nadu. The company invested up to INR 10 million in the site.

The new plant will support its expansion in South India is spread across 39,000 sqft and will be used for assembly, storage and logistics operations. The facility has an annual production capacity of 60,000 units, increasing the company's total manufacturing capacity to 240,000 units per annum.

Production is expected to start with 24,000–30,000 units annually before scaling to meet market demand. The plant currently employs 30 workers, with plans to add over 100 personnel.

Kunal Arya, Managing Director, Zelio E-Mobility, said, “The launch of our Coimbatore facility marks a major milestone in Zelio E-Mobility’s growth journey. South India represents one of the most promising electric mobility markets in the country, and this expansion strengthens our ability to serve customers, dealers, and partners with greater speed and efficiency. This facility will play a crucial role in supporting our next phase of growth, improving supply chain responsiveness, and reinforcing our commitment to accelerating EV adoption across India.”

For FY2026, Zelio E-Mobility reported its revenue grew 81.8 percent YoY to INR 3.13 billion in FY2025–26, with a revenue CAGR of 121 percent over the past four years.

The company maintains a network of over 400 dealers across 25 states and intends to increase this to over 550 dealerships by FY2027.

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