Auto retail sector is key link between consumers and industry?

Union Commerce and Industry Minister Piyush Goyal on Wednesday described the automobile retail sector as a crucial interface between consumers and the industry, stressing its role in ensuring ethical marketing, fair financing and insurance practices, and smooth registration processes.

Speaking at the inauguration of the 7th Auto Retail Conclave and 4th Finance & Insurance Summit organised by the Federation of Automobile Dealers Associations (FADA), Goyal said the credibility of automobile companies depends significantly on how dealers operate and serve customers.

Underlining that GST rate reductions will make vehicles more affordable for consumers starting September 22, the Minister said that the importance of after-sales service, availability of spare parts, and long-term support for buyers – especially in cases where companies exit the Indian market or discontinue models. To safeguard customers, he proposed a framework requiring automakers to maintain local operations and provide after-sales service for a defined period before winding up business in India.

Highlighting India’s attractiveness to global investors, Goyal said Free Trade Agreement (FTA) negotiations with several developed nations would bring more models, greater consumer choice, and enhanced competition to the domestic market. “Competition improves efficiency, product quality, and consumer choice,” he said, adding that growth in manufacturing will come when global companies test and expand their products in India.

The Minister also called for reducing compliance burdens and simplifying laws to make it easier to do business in the sector. He invited stakeholders to submit suggestions on easing procedures at central, state, and local levels, including reforms to the Motor Vehicles Act and decriminalisation of minor offences. He assured that the government would review these proposals and take them up with relevant authorities.