Auto retail sector key interface between consumers and industry: Piyush Goyal

New Delhi September 11

Addressing the inauguration of the Federation of Automobile Dealers Associations' (FADA) 7th Auto Retail Conclave and the 4th Finance & Insurance Summit, Goyal highlighted that the credibility of automobile companies rests significantly on how their dealers engage with and serve consumers.

He highlighted that with automobiles becoming more affordable, the benefits of the recently announced GST reductions will be passed on to consumers starting September 22.

The Minister placed special emphasis on after-sales services, the availability of spare parts, and continued customer support even in cases where companies discontinue models or exit the Indian market.

He noted that there have been instances of companies winding up operations in India, which left consumers in distress.

To safeguard buyers, Goyal proposed a framework or charter mandating companies to maintain local presence and after-sales support for a defined period before closing operations.

"This will ensure customers are not left stranded, while protecting the trustworthiness of the automobile sector," he said.

Goyal also underlined India's growing importance in global trade, stating that the government is actively negotiating Free Trade Agreements with several developed countries.

"While supporting domestic industry, fair competition is equally essential. It enhances efficiency, improves product quality, and expands consumer choice," he said, adding that global companies testing their products in India would pave the way for larger investments.

He reiterated that the government's goal is to help the auto industry expand markets, strengthen supply chains, and build resilience.

Highlighting reforms undertaken to improve ease of doing business, Goyal said multiple government processes had been streamlined to cut down harassment and compliance burdens.

He urged stakeholders to submit suggestions at the central, state, and local levels to further simplify laws such as the Motor Vehicles Act and to decriminalise minor offences that hinder the sector. "All such recommendations will be reviewed and taken up with relevant authorities," he assured.

Goyal noted that the automobile industry has a significant role in generating employment and widening consumer choices. He said that ongoing FTAs would allow India to see a wider variety of models and global players, which would ultimately enhance competition and consumer satisfaction.

Calling for a push to swadeshi, the Minister urged the sector to strengthen Indian suppliers of parts and components, thereby reducing dependence on imports and building resilient supply chains.

"The automobile industry is at an inflection point, driven by aspirational Indians, and has the potential to take off strongly in the coming years," Goyal said, while assuring continued support from the Ministry of Heavy Industries and the DPIIT.

— ANI