India's auto components industry has always been open to concessions granted through trade deals, exhibiting the sector's resilience, Commerce Minister Piyush Goyal said while speaking at Bharat Mobility Global Expo 2025 in New Delhi on January 17.
"Whenever we are negotiating FTAs (free trade deals), the auto components sector always tells me, they are prepared for any concessions being given to any country in the world as long as they have access to that international market, which shows this sector's resilience," Goyal added.
The minister urged the domestic automobile industry to collaborate on machinery and equipment with countries like Switzerland, with whom India has signed a trade deal.
"Auto companies can look at Switzerland to collaborate on machinery since India has an FTA with EFTA and many of them are looking to invest in India," Goyal said.
India signed a trade agreement in March 2024 with the European Free Trade Association (EFTA) consisting of Iceland, Liechtenstein, Norway and Switzerland, a bunch of them are in the pipeline.
What was notable about this particular FTA was a promise that EFTA countries, through their private companies, would facilitate an investment of $100 billion and generate one million jobs in India in the next 15 years.
Goyal also urged auto companies to aim to increase their exports to $100 billion in the next 10 years from $20 billion currently and asked them to create a five-year roadmap to transition to electric vehicles.
He warned the automobile industry from depending heavily on imports, especially on countries that indulge in non-transparent economic practices.
"There are a few (auto) companies, despite several efforts being made, who still prefer to import. Going forward, I suspect they are the ones that will be out of the competition first," Goyal said.
Goyal batted for a faster transition to electric vehicles (EVs), adding that most of the two and three-wheeler segments in automobiles will likely move to electric in a matter of one or two years.
"Four-wheeler auto engines may take more time to move to electric. For new vehicle owners it is most appropriate to consider buying EVs or a variant that suits their pocket," Goyal said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
