Government To Take Serious Action If Any Auto Firm Does Not Allow Its Component Suppliers To Manufacture Locally, Says Piyush Goyal

The commerce and industry minister also advised the industries to focus mainly on five areas including quality, increased value addition in India and focus on new markets

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Commerce and industry minister Piyush Goyal, on Wednesday, said that the government will take serious action if any auto company does not allow its component suppliers to manufacture the components locally. The minister was speaking at the 62nd annual session of the automotive component manufacturers association of India.

Piyush Goyal Twitter handle

"I would appeal to all the auto companies that if any auto company does not allow the auto component suppliers to localize, the government will be taking serious note of that and any effort to force the components to be imported from preferred suppliers overseas only, or at prices which may necessarily not be competitive, is something that will be taken as a serious note of," said Goyal, in a statement.

The minister further added that, "In case any of the auto companies is pressurizing any auto component manufacturers to import the components instead of localizing them here, I would urge you to please come straight to me and talk to me without hesitation."

While expressing his hope that the industry will continue to promote the manufacturing of components in India, Goyal also advised the industries to focus mainly on five areas including quality, increased value addition in India and focus on new markets. Goyal said, "It is important that the industry gets so beautifully organized that the informal sector also comes into focus when it is dealing with a quality and fair competition."

The minister addressed the issue that some auto ancillaries which have collaborations with probably other companies around the world are also facing some stress and pressures from their joint venture partners. On this, Goyal said, "This is the matter that the government will take up and view very seriously and if at all any joint venture partner is unhappy, it is free to leave. But if anybody is being forced on unfair terms, the domestic firm should approach the authorities and the government will take it up with its counterparts in other countries."

The minister also stressed that, "I can assure you, the government will fully support and bat for fair play and business dealings between Indian companies and foreign firms because India has never discriminated with any foreign company."