Commerce and Industry Minister Piyush Goyal has called on India’s automotive industry to deepen localisation, increase exports and invest in technology as the sector prepares to compete more strongly in global markets.
Addressing the 66th SIAM Annual Convention on September 3, 2026, Goyal said India’s expanding trade partnerships, domestic market and changing global manufacturing landscape were creating new opportunities for automobile and component manufacturers. He urged companies to use India’s production scale to serve markets beyond the country.
The minister said Indian manufacturers should ensure that vehicles and components produced domestically meet global standards rather than developing products specifically for the local market. He pointed to opportunities emerging from India’s trade agreements and called on companies to use these arrangements to expand exports and absorb new technologies.
Goyal said nine trade agreements had been finalised over the last four and a half years, covering economies with a combined GDP of around $60 trillion. He said the India-EU agreement was expected to become operational by March next year, while the UK agreement was already operational and provided, to his understanding, 100 per cent access for most auto components at zero duty.
India recorded $863 billion in goods and services exports last year, according to the minister, with the government targeting $1 trillion in the current year. Exports had been increasing by around $9 billion a month during the first five months, while Goyal said the remaining gap to the target was around $29 billion over seven months.
Artificial intelligence was another major theme of the address. Goyal said AI could improve efficiency, competitiveness and customer service in the automotive industry while creating new job profiles. He said job roles could change as technology advances, but employment would continue to grow.
He also highlighted the industry’s growth, noting that the Automotive Component Manufacturers Association (ACMA) had reported growth of around 16-17 per cent, while several automobile companies had recorded growth of more than 20 per cent.
India exported around one million cars last year, Goyal said, while highlighting the expansion of exports by Maruti and the development of electric vehicles by Tata Motors and Mahindra.
The minister also outlined the need to strengthen domestic capabilities in critical minerals, components and energy. He described India’s mobility priorities through four areas: molecules, modules, megawatts and markets.
On research and innovation, Goyal highlighted the ₹1 lakh crore Research and Development Innovation Fund and said the government was prepared to support companies undertaking innovation, investment and R&D.
He further said the government was willing to support large automotive and auto-component projects through land and plug-and-play infrastructure, including country-specific industrial parks where industry demand exists.
Goyal’s message to the sector was clear: stronger localisation, higher exports, technology adoption and global partnerships will be central to India’s ambition of becoming a major automotive manufacturing hub.
Source: This article is based on an official press release issued by the Press Information Bureau (PIB)
Press Release: Press Information Bureau
