Government urges auto dealers to pass on GST gains to buyers

New Delhi: Commerce and industry minister Piyush Goyal Wednesday urged auto dealer associations to pass on the benefits of Goods and Services Tax rate cuts to consumers.

At the Auto Retail Conclave organised by the Federation of Automobile Dealers Associations (FADA), he also said that foreign companies too are keen to invest in India as the country provides a huge domestic market and "with FTAs happening, you will see a greater variety of cars coming into India. if you get them sufficient business, they may want to start manufacturing in India".

Noting that competition brings efficiency, helps improve product quality and ensures that customers get choices, he said: "Therefore, we're working to see a proper balance between protection and newer OEMs (original equipment manufacturers) coming into the Indian market...If we want to grow manufacturing, it will happen once other global companies get a taste of the Indian market. It's important that they get to try out their products in India, before they come and invest. Our effort is to expand the market, demonstrate resilience in our supply chains." He appealed to the industry to promote the sale of "swadeshi" products in the country.


Highlighting the importance of after-sales service, availability of spare parts, and continued support for customers, even in situations where companies decide to discontinue specific models or exit the Indian market entirely, he said that there have been cases where companies set up operations in India, only to wind up and leave after some time, creating challenges for customers who had purchased their products.

In such instances, the responsibility often falls on dealers to address consumer concerns, he said.