Piyush Goyal Stresses Need for Structured Legal Framework for Vehicle Dealers

Commerce and Industry Minister Piyush Goyal has called upon India’s automotive sector to work collectively towards a formal framework or charter that would ensure foreign companies operating in India remain accountable to local consumers, even if they choose to exit the market.

Addressing dealers at the 7th Auto Retail Conclave of the Federation of Automobile Dealers Associations (FADA), the minister said, “I would appreciate it if you could work within the industry with the auto companies and work out some kind of framework, regulation, or charter that we can ensure everybody who comes to India and does business here commits to.”

The minister said that such a mechanism should mandate companies to maintain a local presence to support after-sales service and consumer obligations before shutting down operations.

“If anybody closes their shop, we must ensure that they have a local presence to be able to continue to provide that kind of service,” the minister stated.

While highlighting the importance of a stable, service-oriented ecosystem in the auto industry, Goyal linked it to the broader push towards global trade partnerships.

“Well, we are looking at free trade agreements in many parts of the developed world,” he added.

Push for Balanced Growth

Goyal highlighted the influx of global investment into India, driven by the country’s large and growing market. However, he cautioned that protectionism alone would not serve domestic interests.

“We are seeing a lot of companies also coming in and investing in India, for the large market that India is. I hold the view that while we will certainly protect and support domestic industry and domestic manufacturers, we will also have to ensure fair competition,” he said.

“Because competition brings efficiency, competition helps you improve your product quality, and competition ensures that the customer gets value, the customer gets options and choices,” Goyal said.

Call for Industry-Led Charter

Reiterating the need for collaborative industry action, Goyal urged OEMs and dealers to share responsibility in building consumer trust and long-term resilience.

“While you are working with the government, I think the OEMs also have a responsibility,” he said. “But more importantly, I think we have to create a charter, create a framework, in which we can ensure that all of you are protected.”

“Make Swadeshi Cars”

As part of the government’s larger vision for self-reliance, Goyal made a strong pitch for greater acceptance and promotion of products manufactured in India.

“Work together. Let’s promote Swadeshi. Made in India products,” he said. This, he added, would make the Indian vehicle arena more competitive.