How is the Centre Aiding the Automobile Industry's Market Expansion and Supply Chain Strengthening?

New Delhi, Sep 11 (NationPress) The government is committed to fostering the growth of the automobile sector, creating additional job opportunities, and enhancing both the size and reach of the market, as stated by Union Minister of Commerce and Industry, Piyush Goyal.

The automobile retail sector serves as the vital link between consumers and the industry, ensuring ethical marketing practices, high-quality services, equitable financing and insurance terms, as well as efficient registration processes. This was highlighted during the inauguration of FADA's 7th Auto Retail Conclave and 4th Finance and Insurance Summit.

According to the minister, this sector plays a crucial role in bridging the gap between customers and automobile manufacturers, with the credibility of these companies being contingent on how dealers operate and cater to consumer needs. With cars becoming more affordable, he announced that the benefits of GST reductions will be passed on to consumers starting September 22.

Goyal emphasized the significance of after-sales service, the availability of spare parts, and ongoing customer support, especially when companies choose to discontinue certain models or exit the Indian market.

He noted that there have been instances where companies established operations in India, only to subsequently shut down, posing challenges for consumers who had purchased their products.

“In such situations, dealers often bear the responsibility of addressing consumer grievances. To avert disruptions and safeguard buyers, he proposed the establishment of a framework or charter mandating all companies operating in India to maintain a local presence and provide after-sales support for a stipulated duration before they can cease operations,” the minister remarked.

This, he asserted, would guarantee that customers aren’t left in the lurch and that the credibility and trustworthiness of the automobile sector are upheld.

He further noted that India is in talks for Free Trade Agreements with several developed nations and is drawing considerable investments from global firms due to the expansive Indian market.

While advocating for domestic industries and manufacturers, he stressed the necessity of fair competition, which enhances efficiency, product quality, and consumer choices.

He elaborated that growth in manufacturing will occur when global firms trial their products in the Indian market, resulting in more substantial investments. The goal, he stated, is to broaden markets, fortify supply chains, and cultivate resilience while ensuring robust support for domestic manufacturing.

Goyal also called on the sector to champion swadeshi and made-in-India products, encouraging consumers to opt for these options.