Goyal Warns Automakers Against Lower-Quality India Models

Commerce and Industry Minister Piyush Goyal has warned global automakers against offering Indian customers vehicles of a lower quality than those sold overseas, while asking manufacturers to expand exports where components cannot be localised.

Speaking at the annual convention of the Society of Indian Automobile Manufacturers (SIAM) in New Delhi, Goyal said the government would not accept companies producing one quality of vehicle for India and another for international markets.

“Should a company be producing a different quality of product for India and a different quality of product for its international market? That trend is not going to be accepted,” Goyal said.

He referred to instances where vehicles made in India were not exported because their design did not match comparable products offered by the same manufacturers overseas.

“I heard in one or two cases that they are not exporting because the design of the car that they make here is suboptimal compared to the car that is being sold globally by them,” he said.

Goyal asked automakers to make vehicles in India that could compete in international markets rather than develop products primarily for domestic demand.

“Gone are the days when we could look at the domestic market and satisfy the domestic market,” he said.

The minister also asked companies to expand exports if certain imported components or technologies could not be produced locally.

“If you are not able to indigenise, make up for it with exports. Expand your exports,” Goyal said.

He cited Maruti Suzuki’s shipments, including exports to Japan, as an example of vehicles made in India serving mature international markets.

Goyal said manufacturers needed to focus on quality, build scale and raise their export ambitions.

“Compete with the best in the world. Beat all records,” he said.