New Delhi, July 7 -- Automakers looking to import fully made motors to skirt China's export ban on rare earth magnets have called for lower import duties and easier local content requirements.

Passing on the duty burden on imported motors will raise vehicle prices, and manufacturers will miss out on production incentives with strict local content rules, the Society of Indian Automobile Manufacturers (Siam) wrote to the government. Production could come to a complete halt for several models if the motors aren't available.

"In the current scenario when there is a restriction on import of standalone magnets, full assembly/allied components/sub-assemblies will have to be imported which shall attract a basic customs duty (BCD) of 15% leading...