Piyush Goyal calls for mandatory after-sales support as safeguard for consumers

Acknowledging the critical role of dealers as a “front-facing sector” and a vital bridge between companies and customers, Commerce and Industry Minister Piyush Goyal stressed the importance of after-sales service, spare parts availability, and continued support—especially when a company exits the Indian market. To ensure customers are not left stranded, he proposed a new framework or charter requiring companies to maintain a local presence and provide after-sales support for a defined period before shutting operations.

Speaking at an event organised by the Federation of Automobile Dealers Associations (FADA) in New Delhi, Goyal underlined the need to balance protecting domestic manufacturing with promoting fair competition. He said growth and efficiency come from allowing global players into the Indian market, which broadens consumer choice and attracts larger investments. India’s ongoing negotiations for Free Trade Agreements (FTAs) with several developed countries, he noted, are expected to bring a wider variety of cars and models to the market.

The Minister also said he would take up the Goods and Services Tax (GST) concerns of auto dealers with the Finance Ministry, expressing hope that lower taxes would be passed on to consumers—making vehicles more affordable and boosting sales. He assured the industry that the government, through the Ministry of Heavy Industries and the Department for Promotion of Industry and Internal Trade (DPIIT), remains committed to supporting the auto sector’s growth, generating employment, and helping it reach its full potential.

Highlighting the government’s broader push to ease business operations, Goyal pointed to efforts to cut red tape, streamline procedures, and simplify compliance. He invited industry stakeholders to submit recommendations to further improve the business environment, including proposals to amend laws such as the Motor Vehicles Act and decriminalize minor offenses.