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.

Comments (0)

ADD COMMENT

Link Copied!

German luxury carmaker Mercedes-Benz has attained another milestone by rolling out the 600,000th Mercedes-Benz G-Class from Graz, Austria. The milestone vehicle is an electric G 580 with EQ Technology finished in obsidian black metallic.

Since its launch in 1979, the G-Class has become a symbol of off-road capability and design. The first G-Models combined off-road performance with on-road comfort and Mercedes' safety standards. In the past four decades, it has evolved while retaining key features such as all-wheel drive, differential locks, and a ladder frame. Design elements like the round headlights and exposed spare wheel remain.

In celebration of its heritage, a limited edition, the G-Class Edition Stronger Than The 1980s, was released last year. This model paid homage to the original W 460 series.

The brand's customisation service, Manufaktur, has seen increasing popularity. Since 2019, over 90 percent of G-Class customers choose at least one Manufaktur option, averaging three per vehicle. Customers can now select from up to 20,000 paint colours, including heritage shades.

Comments (0)

ADD COMMENT

Link Copied!

Vietnamese automaker VinFast has officially inaugurated its electric vehicle assembly plant at SIPCOT Industrial Park in Thoothukudi, Tamil Nadu, India.

The new facility is VinFast’s third operational plant and the fifth project in its global manufacturing network. It is part of the company’s long-term bet on selling its vehicle in the world’s third-largest automobile market.

The factory is spread across 400 acres and is equipped with state-of-the-art production lines, featuring advanced automation and technologies. The complex houses multiple workshops, including body shop, paint shop, assembly shop, quality control centre, and a logistics hub. It also includes an auxiliary cluster for local contractors, which is expected to expand in the coming years.

The company expects to create around 3,500 jobs for local workers at full capacity, along with several thousand indirect jobs in the supply chain ecosystem. To start with, the company will assembly the VF 7 and VF 6 electric vehicles with a capacity of 50,000 units per annum, which can be scaled upto 150,000 units per annum to meet market demand.

VinFast states with the Tamil Nadu plant on stream, it moves closer to its 2025 sales target of 200,000 vehicles and its long-term production goal of 1 million vehicles per year by 2030.

Pham Sanh Chau, CEO, VinFast Asia, said, “The VinFast Tamil Nadu plant marks a strategic milestone in our long-term commitment to the Indian market. It establishes a strong foundation for sustainable growth and positions us to offer high-quality, competitively priced electric vehicles to Indian consumers. Looking ahead, the facility will expand its production capacity to meet rising demand. We aim to develop it into VinFast’s largest export hub for South Asia, the Middle East, and Africa. In fact, we've already secured initial orders from several countries across these regions. In close collaboration with the Tamil Nadu government, VinFast is working to transform the area into the 'EV capital of South Asia'—supporting both the dynamic domestic market and our broader regional ambitions.”

Going forward, VinFast aims to further promote localisation, technology transfer and also upskill its workforce.

Comments (0)

ADD COMMENT

Link Copied!

Chinese electric vehicle manufacturer NIO has attained a new production milestone with the 800,000^th unit – Onvo L90 – rolling out from its Factory One in Hefei on 24 July 2025.

Since the pre-order started on 10 July, the company shared that the L90 has received widespread interest and recognition from users and the market.

Built on NIO’s decade of investment in the charging and swapping infrastructure, the L90 redefines the family-oriented three-row electric SUV by tackling two major user pain points: charging anxiety and space anxiety.

The test drives for the L90 officially began on 23 July with nearly 600 test drive cars now available at over 400 ONVO stores and showrooms in 140 cities in China. The L90 is set to be officially launched on 31 July, with deliveries starting 1 August.

Comments (0)

ADD COMMENT

Link Copied!

The Association of Indian Forging Industry (AIFI), the apex representative body of the Indian forging sector, has signed a Memorandum of Understanding (MoU) with the Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India.

The agreement was signed in the presence of the Union Minister of Power and Housing & Urban Affairs, Manohar Lal, signifying an important step towards embedding sustainable manufacturing practices within the forging sector. It forms part of the newly launched Assistance for Deployment of Energy Efficient Technologies in Industrial Establishments (ADEETIE) scheme.

The ADEETIE initiative, announced by the Ministry of Power and managed by BEE, is focused on enabling micro, small and medium enterprises (MSMEs) across 14 energy-intensive sectors – including forging – to adopt advanced energy-efficient technologies. The scheme adopts a comprehensive approach, offering:

• Interest subvention on loans for technology adoption (5 percent for micro and small enterprises, 3 percent for medium enterprises).
• End-to-end support, including investment-grade energy audits, guidance with project execution and robust post-deployment monitoring.
• Establishment of a dedicated project management unit and a nodal banking partner to streamline the process.

With a total budget of INR 10 billion, the scheme aims to unlock more than INR 90 billion in overall investments, including INR 67.5 billion specifically set aside for MSME lending. This allocation is expected to reduce the financial burden for forging units seeking to embrace energy-efficient solutions.

Yash Munot, President, AIFI, said, “This collaboration with the Bureau of Energy Efficiency marks a significant step forward for the Indian forging industry. As one of the most energy-intensive sectors, forging stands to benefit immensely from the structured support offered under the ADEETIE scheme. By enabling access to financial incentives and technical guidance, this initiative will empower MSMEs to adopt cutting-edge, energy-efficient technologies. It aligns perfectly with our vision of building a globally competitive, environmentally responsible and innovation-driven forging ecosystem. AIFI is committed to mobilising our members across clusters to take full advantage of this opportunity and contribute meaningfully to India’s broader sustainability and industrial growth goals”.

Deven Doshi, Chairman – Government Interface, AIFI, added, “Energy efficiency is very essential for forging companies, but the MSME sector often faces structural barriers in adopting cleaner and more efficient technologies. The ADEETIE scheme provides a structured framework of support, including technical, operational and financial aspects, that directly addresses these challenges. AIFI is proud to be a partner in this transformative journey. This collaboration not only ensures sectoral compliance with energy norms but also paves the way for long-term industrial modernisation.”

The Indian forging industry, particularly its MSME segment, has been a foundation for the country’s manufacturing and export sectors, supporting diverse areas such as automotive, defence and capital goods. Despite this, the sector has historically faced high energy costs and sustainability challenges. The ADEETIE scheme is set to address these issues directly, equipping forging enterprises with fiscal support and technical know-how to achieve sustainable growth.

Through this MoU, AIFI will actively promote and facilitate the implementation of the ADEETIE scheme across forging clusters nationwide, ensuring that members gain timely access to tools, knowledge, and incentives needed to strengthen both competitiveness and environmental responsibility.

Comments (0)

ADD COMMENT

Link Copied!