Indian car industry is really facing a tough time. In the early fiscal, the industry faced the challenge posed by inflation, then the high fuel prices and high interest rate. After all this, when the auto industry was just managing to combat the impacts, a severe liquidity crunch made a hard hit.

While the challenges are still on, again a breeze of gloom has entered the car industry accelerating the hurdles with the recent imposition of restrictions on import of certain key auto components in India.

Till date bumper parts and transmission shafts were considered to fall under free import category. But according to the recent notification of DGFT (Director General of Foreign Trade), these basic automobile components have been pushed under restricted category. Not only these, even components like iron products or non alloy steel coated components have been placed under the restricted import category. All these components are used to create car chassis without which the car cannot be designed.

Being an essential part of the car, the taxes, and charges on these components will further increase the cost of production. So, there are possibilities that cars prices may hike. If you are planning to purchase a car, then get one now before the prices goes up.