Auto Retail Sector Bridges Consumers and Industry, Says Union Minister Piyush Goyal

New Delhi, 10 September 2025 – Union Minister of Commerce and Industry Piyush Goyal today emphasized the critical role of the automobile retail sector as the interface between consumers and the industry. Speaking at the inauguration of FADA’s 7th Auto Retail Conclave and 4th Finance & Insurance Summit, Goyal highlighted that ethical marketing, quality service, fair financing, smooth registration processes, and after-sales support are essential responsibilities of dealers.

Goyal noted that the credibility of automobile companies depends largely on the performance of their dealers and their commitment to serving customers. He announced that with automobiles becoming more affordable, the benefits of GST reductions will be passed on to consumers starting 22 September.

Stressing the importance of after-sales service, Goyal observed that instances have arisen where companies exited India after setting up operations, leaving customers in a lurch. He proposed a framework or charter that mandates companies to maintain a local presence and provide after-sales support for a defined period before closing operations, ensuring consumer protection and maintaining sector credibility.

Goyal highlighted India’s ongoing negotiations for Free Trade Agreements with developed countries and the significant global investments attracted due to the size of the Indian market. He stated that fair competition enhances efficiency, product quality, and consumer choice, while encouraging global companies to test and expand manufacturing in India. The government aims to expand markets, strengthen supply chains, and build resilience while continuing strong support for domestic manufacturing.

He further assured the sector that the government is working to simplify business operations by reducing harassment, streamlining procedures, and minimizing bureaucratic hurdles. Industry stakeholders were invited to submit suggestions to facilitate business, including reducing compliance burdens, simplifying laws like the Motor Vehicles Act, or decriminalizing minor offences.

Goyal emphasized that the government remains committed to promoting the growth of the automobile industry, expanding employment, and enhancing market reach. He highlighted that ongoing Free Trade Agreements would bring a wider variety of vehicles and global companies to India, offering consumers more choices and encouraging healthy competition.

The Minister urged the sector to promote Swadeshi and made-in-India products, strengthen domestic suppliers, and reduce import dependence, thereby building resilient supply chains and self-sufficiency. Concluding his remarks,  Goyal said the automobile industry is at an inflection point, driven by aspirational Indians, and has strong potential for growth in the coming years.