Centre to help automobile industry expand markets, strengthen supply chains

New Delhi, Sep 11 (IANS) The government’s focus remains on promoting the growth of the automobile industry, creating more employment opportunities and expanding the size and reach of the market, according to Union Minister of Commerce and Industry, Piyush Goyal.

The automobile retail sector is the interface between consumers and the industry, responsible for ethical marketing, providing good quality service, fair financing and insurance terms, and smooth registration processes, he said during the inauguration of FADA's 7th Auto Retail Conclave and 4th Finance and Insurance Summit.

The minister said that the sector acts as a bridge between customers and automobile companies, and the credibility of the companies depends on how dealers operate and serve consumers. He said that with automobiles becoming more affordable, the benefits of the GST reductions will be passed on to consumers from September 22.

Goyal also underlined the critical importance of after-sales service, availability of spare parts, and continued support for customers, even in situations where companies decide to discontinue specific models or exit the Indian market entirely.

He observed that there have been cases where companies set up operations in India, only to wind up and leave after some time, creating challenges for customers who had purchased their products.

“In such instances, the responsibility often falls on dealers to address consumer concerns. To prevent disruption and protect buyers, he suggested the creation of a framework or charter that would require all companies operating in India to commit to maintaining a local presence and providing after-sales support for a defined period before they are permitted to close operations,” said the minister.

This, he emphasised, would ensure that customers are not left stranded and that the credibility and trustworthiness of the automobile sector are maintained.

He said India is negotiating Free Trade Agreements with several developed countries and attracting significant investment from global companies because of the size of the Indian market.

While supporting domestic industry and manufacturers, he said there must also be fair competition, as competition improves efficiency, product quality, and consumer choice.

He explained that growth in manufacturing will come when global companies test their products in the Indian market, leading to larger investments. The aim, he said, is to expand markets, strengthen supply chains, and build resilience, while ensuring domestic manufacturing remains strongly supported.

Goyal also urged the sector to promote swadeshi and made-in-India products, and to encourage consumers to prefer them.

--IANS

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