Union Commerce and Industry Minister Piyush Goyal has made an important announcement for the automobile industry.
He said the government is working to boost the sector by creating jobs, growing the market, and supporting local manufacturing.
At the same time, he criticized foreign car companies that start operations in India and then suddenly shut down, causing trouble for customers.
New Framework to Protect Customer Interests
While speaking at a FADA (Federation of Automobile Dealers Associations) event, Goyal said that automobile dealers play a key role as a bridge between companies and customers.
A company’s reputation depends heavily on the kind of after-sales service its dealers provide.
Goyal raised concerns about companies that exit the Indian market without ensuring proper service and spare parts for existing customers.
To prevent this, he proposed a new rule or framework.
Will Companies Have to Continue Services After Shutting Down?
Yes, under the proposed rule, any auto company operating in India would be required to:
Stay present in the country for a fixed period after shutting operations
Continue to provide after-sales service and spare parts
This rule aims to protect customer rights, reduce the inconvenience faced by buyers, and build greater trust in the Indian auto market.
Vehicles to Become Cheaper From September 22
Goyal also shared some good news: due to the recent GST reform, vehicle prices will reduce from September 22.
He said this will benefit customers and help grow the domestic automobile sector by strengthening supply chains and expanding the market.
Focus on ‘Made in India’ Products
The Minister encouraged the auto sector to support indigenous production and increase use of Made in India components and vehicles.
He mentioned that India is actively working on Free Trade Agreements (FTAs) with several developed countries.
These deals aim to attract more foreign investment and promote manufacturing in India.
Goyal added that fair competition improves both product quality and customer choice.
When global companies test their products in India, it leads to higher investments and better manufacturing standards.
This approach, he said, will not only strengthen India’s automobile market but also ensure customer protection and enhance the ownership experience.
