Aluminium Association of India Ask Centre To Hike Import Duty And Encourage Domestic Production

Aluminium

The Aluminium Association of India (AAI), the apex body representing aluminium producers in India, has submitted its pre-budget representation to the Department for Promotion of Industry and Internal Trade (DPIIT) under Ministry of Commerce, Government of India.

It emphasises aluminium’s crucial role in India’s continued growth, especially as the nation envisions becoming a ‘Viksit Bharat’ by 2047. High aluminium usage is an established marker of advanced economies, given the metal’s extensive use in both present and futuristic applications. This has led several nations like USA, Malaysia and Indonesia to designate aluminium as a ‘strategic sector’.

As per industry estimates, India’s per capita consumption of aluminium is still around 3kg per annum, compared to the global average of 12kg. However, the sector is facing major challenges in attracting fresh investments, despite domestic demand for aluminium set to reach 10 MTPA by 2030. So far, the Indian aluminium industry has invested over USD 20 billion, to expand production capacity to 4.2 MTPA to meet the growing demand. However, a further investment of about USD 40 billion over the next 6 years will be needed to meet the expected demand of 10 MTPA, while also creating more jobs within India.

AAI states that given that aluminium is a strategic metal with extensive usage in defence, aerospace and sunrise sectors of renewables, electric vehicles, power transmission and sustainable infrastructure, it is paramount for India to be self-sufficient in aluminium production. Towards encouraging fresh investments, aluminium producers have requested the Central Government to safeguard the industry from surging imports.

The industry body states that over the past couple of years, imports of primary aluminium have doubled while there has also been a significant surge in low-quality scrap and downstream products, especially from China.

Industry members have highlighted that the influx of imports in the domestic market is a deterrent to making new investments in the sector, even when India has all the necessary ingredients to emerge as a global aluminium hub. According to them, the primary reason for the surge in imports is the low import duties on primary/downstream products and a prevalent duty difference between primary goods and scrap in aluminium. This is unlike other key non-ferrous metals, where the duty for scrap and primary is at par.

AAI states it is therefore requesting the Central Government to help ensure the nation’s self-sufficiency and attract new investments by increasing the import duty on primary/downstream products to 10 percent from the existing 7.5 percent. Additionally, to control cheap imports, the duty on aluminium scrap also needs to be set at 7.5 percent, at par with other aluminium products. This measure would encourage the recycling of domestic scrap and limit the influx of low-quality foreign scrap, helping strengthen the circular economy.

To ensure global competitiveness, it is essential that policies nurture a sustainable environment, fostering growth for the domestic industry while positioning India as a leader in the global market. This will provide some relief to the industry, already burdened by high tax and regulatory charges.

At present, the industry incurs around 17 percent of its cost of production in taxes, levies, and regulatory compliance charges. To ease this burden, the AAI has proposed an urgent rationalising of duties on crucial raw materials.

The domestic aluminium industry’s existing investments in capacity have led to the creation of over 800,000 direct and indirect jobs and spurred the development of more than 4,000 small and medium enterprises (SMEs) in remote regions, particularly in the downstream sector. According to the AAI, the additional investment of USD 40 billion to meet domestic demand would align with the Prime Minister's vision for an ‘Atmanirbhar Bharat’, while also creating 2 million livelihood opportunities across the country. With government support in the form of duty rationalisation and enhanced import restrictions, the domestic producers are confident of contributing to India's journey toward self-reliance.

Representational image courses: Victor Kovshevny/Flickr

Mahindra Moves Towards Possession Of 800 Acres For Nagpur Manufacturing Facility

Mahindra

Mumbai-headquartered automotive major Mahindra & Mahindra is moving towards taking possession of an initial package of approximately 800 acres for an automobile and tractor manufacturing facility at Additional Butibori in Nagpur, Maharashtra.

The site forms part of a planned 1,500-acre development in Vidarbha, which will be accompanied by a 150-acre supplier park in Sambhajinagar.

When fully operational, the site will feature an annual production capacity exceeding 500,000 vehicles and 100,000 tractors. The Sambhajinagar supplier park will provide components to the Nagpur facility and to Mahindra's existing production plants in Chakan and Nashik.

Furthermore, Mahindra is also establishing training frameworks to identify and develop workforce capabilities for manufacturing across powertrains and technologies. Over the next two to three years, existing associates will be considered through a selection process to fill roles at the facility based on technical capability, performance and alignment with company standards.

Mahindra also plans to establish a training centre in Nagpur to build technical skills in areas including mechanical operations, welding and painting. Further operational details regarding workforce requirements and recruitment processes will be released as project development continues.

Skoda Octavia Reaches 30-Year Production Milestone

Skoda Octavia

Czech automaker Skoda Auto is marking the 30th anniversary of the modern-generation Octavia, which first entered production on 3 September 1996. The model has served as the carmaker's core product following its integration into the Volkswagen Group, reaching total production of almost 7.9 million units across four generations. At present, the Skoda Octavia is manufactured in Mladá Boleslav and Kvasiny in the Czech Republic, as well as Kostanay in Kazakhstan.

Klaus Zellmer, CEO, Skoda Auto, said, "The Octavia has been an icon of the Skoda brand for three decades. As Combi or Liftback, it has consistently delivered what customers prefer: outstanding space, practicality, safety, and features at an exceptional value. In many ways, the Octavia defined the Skoda ambition to offer more than expected. This has resulted in the Octavia powering our international growth by earning the trust of generations of customers. While Skoda continues to evolve and expand into new segments, the Octavia remains a powerful symbol of customer-centric innovation and Simply Clever thinking."

The Skoda Octavia’s development began in 1992 under design chief Dirk van Braeckel, reviving a nameplate originally used by Skoda between 1959 and 1971. The initial liftback variant launched with a 528-litre boot capacity, supported by a production plant in Mlada Boleslav that increased the site's annual vehicle capacity from 90,000 to 350,000 units.

A Combi estate version joined the line-up in 1998, followed by an all-wheel-drive variant in 1999 and the first Octavia RS in 2000. The first generation recorded 1.44 million total unit sales before ending production in 2010.

The second-generation Octavia debuted in 2004, introducing dual-clutch transmission options and expanding boot capacity by 32 litres, achieving 2.6 million sales prior to its replacement in 2013. The third generation, manufactured from 2012 to 2020, incorporated revised driver assistance systems, reduced body weight, and efficiency updates, alongside an exterior facelift in 2017.

The current fourth-generation Octavia launched in November 2019 in liftback and Combi formats. An update introduced in early 2024 added safety equipment, including up to ten airbags and revised driver fatigue monitoring software, as the vehicle continues to serve commercial and private markets globally.

Maruti Suzuki Commences Rail Dispatches To Tamil Nadu’s Pollachi Terminal

Maruti Pollachi

Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, has announced its automobile rake reached Pollachi Railway Terminal in Tamil Nadu, making it the first passenger vehicle manufacturer to dispatch vehicles by rail to the terminal.

The rake carried 120 vehicles, including Wagon R, Ertiga, Dzire and Celerio models, and departed from the Manesar in-plant railway siding on 18 August 2026.

Maruti Suzuki worked with Indian Railways to operationalise Pollachi Railway Terminal for rail-based vehicle dispatches. The location adds a destination in Southern India alongside Coimbatore.

The terminal enhances the ability of the company to serve customers across the region ahead of the Onam festival in Keralam. The facility can support 70 automobile rakes annually, enabling the delivery of 11,000 vehicles each year through railways.

Interestingly, the manufacturer adopted rail-based vehicle dispatches during FY 2014-15 to reduce CO2 emissions, fuel consumption and road congestion. The company increased the share of rail in outbound vehicle dispatches from 5 percent in FY 2014-15 to 26.5 percent in FY 2025-26, dispatching 3.2 million vehicles cumulatively via rail networks to date.

Maruti Suzuki India aims to increase the share of rail-based vehicle dispatches to 35 percent by FY 2030-31 to reinforce commitments to rail logistics.

LG Energy Solution

South Korean battery manufacturer LG Energy Solution has commenced operations at its 226-acre manufacturing facility in Lansing, Michigan. The site represents an investment exceeding USD 2 billion since 2022 and targets an annual production capacity of over 35 GWh at full scale.

The site produces lithium-iron phosphate battery cells for energy storage systems alongside nickel-manganese-cobalt cells for electric vehicles. The energy storage cells will be integrated by LG Energy Solution Vertech into equipment for grid and industrial uses, with energy supplier DTE Energy designated among the utility customers. The vehicle battery lines will supply nickel-manganese-cobalt cells to Toyota Motor Manufacturing Kentucky for installation in the 2027 Toyota Highlander EV.

The Lansing site currently employs 900 people, with headcount projected to reach 1,700 at capacity. The facility joins an existing manufacturing site in Holland, Michigan, as well as an engineering centre in Troy, bringing the company's total investment in the state to over USD 5 billion since 2010. The company plans to establish over 50 GWh of lithium-iron phosphate cell production capacity across North America across five operating and joint-venture plants.

Gretchen Whitmer, Governor of Michigan, said, “Michigan is open for business and creating good-paying jobs building the future of cars, chips, and batteries. LG Energy Solution has called Michigan home for more than 20 years, and we’re proud to see that investment continue with the start of production at its Lansing facility. This project will create up to 1,700 good-paying jobs, helping more working families make it in Michigan. It’s part of our historic work to invest in clean energy, electric vehicle manufacturing, and battery storage in communities across Michigan. Let’s keep working together to grow Michigan’s economy, create opportunity, and build a bright future for our state.”

Doug Burgum, U.S. Secretary of the Interior, stated, “Domestic battery production is foundational to America’s energy future – reducing dependence on foreign adversaries, driving good-paying American jobs and advancing the American Energy Dominance Agenda. Michigan is uniquely positioned to help lead this effort with its skilled workforce, manufacturing expertise and the industrial capabilities needed to strengthen America’s domestic battery supply chain. The Trump administration is thrilled to see these vital manufacturing jobs returning to the U.S. and remains committed to ensuring we have the capabilities to build the technologies of the future here at home.”

Sangwoo Hong, Consul General of the Republic of Korea in Chicago, said, “The Korea-U.S. alliance has evolved into a comprehensive strategic alliance including economic cooperation and cutting-edge technology. Today’s opening is a key milestone. The battery industry sits right at the heart of our shared strategic priorities. Michigan is a prime example of this strategic partnership. LG Energy Solution is expanding its presence across the United States. By growing from Holland to this new facility in Lansing, LG Energy Solution is solidifying Michigan’s position as a global hub for battery manufacturing.”

David Kim, CEO, LG Energy Solution, said, “Today marks a defining milestone for LG Energy Solution. Lansing will produce advanced batteries that support not only the future of mobility, but also America’s growing energy infrastructure and digital economy. We are strengthening America’s battery ecosystem, expanding our manufacturing footprint and reaffirming our long-term commitment to the United States.”

Dae-sik Choi, President, LG Energy Solution Michigan, said, “The state’s skilled workforce is a great fit for our high impact industry, and we expect to continue our partnership with Michigan well into the 21st century. The jobs at this facility pay well, offer great benefits and require creativity and problem solving at all levels. Unlike many other high-tech industries, battery making creates jobs for everyone, from hourly workers to advanced degree holders.”