India has doubled the import duty on platinum as part of broader measures aimed at curbing precious metal imports and easing pressure on the rupee and foreign exchange reserves. The move is expected to increase input costs for automobile manufacturers, particularly makers of diesel SUVs and hybrid vehicles that use platinum in catalytic converters and emission-control systems.
The revised tariff structure comes amid concerns over rising imports of precious metals and widening trade imbalances linked to elevated global commodity prices and currency volatility. Industry analysts said the higher duty could raise production costs across segments dependent on platinum-based components, potentially leading to higher vehicle prices in the domestic market.
Automobile manufacturers and component suppliers are assessing the financial impact of the duty hike, especially as demand for hybrid and premium utility vehicles continues to grow in India. Market observers noted that while the measure may help reduce non-essential imports and support the rupee, it could also increase cost pressures on the automotive supply chain and consumers.