Piyush Goyal Urges Auto Retailers to Ensure Trust, Growth and Fair Competition

Union Minister of Commerce and Industry Shri Piyush Goyal inaugurated the 7th Auto Retail Conclave and the 4th Finance & Insurance Summit organized by the Federation of Automobile Dealers Associations (FADA), where he emphasized the critical role of the automobile retail sector as the interface between manufacturers and consumers. He noted that the sector is responsible not only for marketing vehicles but also for ensuring ethical practices, fair financing and insurance terms, quality after-sales services, and smooth registration processes.

Dealers as the Bridge Between Industry and Consumers

Shri Goyal highlighted that the credibility of automobile companies depends significantly on how dealers serve customers. While manufacturers design and produce vehicles, the first and lasting impression on consumers often comes from the retail and service experience. He urged the sector to take this responsibility seriously, noting that the industry’s reputation relies on transparency, trust, and efficiency at the dealership level.

Passing on Benefits of GST Reductions

The Minister announced that with automobiles becoming more affordable, the benefits of the GST rate reductions will be passed on to customers from 22 September. This, he said, would encourage demand and stimulate sales, providing a boost to both the industry and consumers.

Safeguarding Customers Against Market Exits

A major concern raised by Shri Goyal was the after-sales support gap created when companies exit the Indian market. He recalled past experiences where automakers set up shop in India but withdrew abruptly, leaving customers stranded without access to spare parts or service support.

To prevent this, Shri Goyal proposed the creation of a mandatory framework or charter requiring automobile companies to maintain a local presence and provide after-sales service for a defined period before they are allowed to cease operations. This safeguard, he stressed, would protect consumers, build confidence, and ensure continuity of service.

Free Trade Agreements and Global Investment

On the international front, Shri Goyal highlighted India’s progress in negotiating Free Trade Agreements (FTAs) with developed countries, which is drawing significant investments into the automobile sector. He noted that fair competition is vital, as it encourages innovation, efficiency, and better choices for consumers.

He explained that global companies testing and launching products in India would further strengthen supply chains and attract deeper investments, while also giving domestic manufacturers opportunities to upgrade technology and expand markets.

Improving Ease of Doing Business

Shri Goyal reiterated the government’s commitment to creating a more business-friendly environment by:

• Reducing bureaucratic hurdles and unnecessary harassment.

• Simplifying compliance requirements for companies and dealerships.

• Streamlining procedures across central, state, and local levels.

• Decriminalising minor offences under laws like the Motor Vehicles Act that currently hinder operations.

He invited stakeholders from the sector to compile suggestions on how to further ease business operations, assuring them that all proposals would be considered seriously and taken up with relevant authorities.

Supporting Growth and Employment

The Minister underscored that the government is determined to expand India’s automobile industry, both as a source of employment and as a driver of innovation. With FTAs and investments, India is expected to witness an expansion in the variety of cars, models, and global companies entering the market. He stressed that while the government provides support, customer satisfaction ultimately rests with the industry, where dealers and manufacturers must ensure product quality and strong after-sales service.

Promoting Self-Reliance and Swadeshi

Shri Goyal also urged the industry to actively promote swadeshi and made-in-India products, particularly by supporting local suppliers of auto parts and components. Reducing dependence on imports and strengthening domestic supply chains, he said, would help India achieve greater self-reliance and resilience.

A Sector at an Inflection Point

Concluding his remarks, Shri Goyal observed that the automobile sector stands at a major inflection point, driven by aspirational Indian consumers and rapid economic growth. He expressed confidence that with ethical practices, strong dealer participation, and proactive government support, the industry is poised for a robust take-off in the coming years.