IANS

Mumbai, Sep 3: Union Heavy Industries Minister Vilasrao Deshmukh Thursday said the government is examining setting up of a separate financing arm for auto components manufacturers.

"We are looking to set up a separate financing arm for auto components manufacturers," Deshmukh told reporters at the sidelines of the annual conference of Automotive Components Manufacturers Association (ACMA).

The minister asked manufacturers to use the measures announced in the foreign trade policy to attain objectives of the Automotive Mission Plan 2006-15.

The Automotive Mission Plan 2006 aims at doubling the contribution of the automotive sector in GDP (gross domestic product) by taking the turnover to $145 billion in 2016, with a special emphasis on the export of small cars, multiple utility vehicles (MUVs), two wheelers and auto components.

Deshmukh also said that while the Indian automobile industry was affected to a lesser extent than its global peers, auto components exports remained a concern. The sector was also facing stiff competition from cheap imports.