Piyush Goyal Urges Indian Auto Industry to Boost Exports, Touts Govt Support for Manufacturing

Union Minister of Commerce and Industry Piyush Goyal urged the Indian automotive industry to “think globally”, during his address at the 66th annual SIAM Convention on Thursday, calling on manufacturers to expand global trade partnerships, boost exports, and simultaneously increase domestic sourcing and technology development. He said there is potential for exports to double every two years.

The minister singled out Maruti Suzuki as India’s top passenger vehicle exporter for the past five years running, and praised its ecosystem of over 100 domestic companies involved in its supply chain. Maruti Suzuki now ships cars to over 120 countries, including Suzuki’s home country, Japan. It exported 4.47 lakh units in FY 2025-26, with a 55 percent overall share of passenger vehicle exports in the April-June quarter this year. Six out of the top eight exported car models from India during this period were from Maruti Suzuki.

Speaking at the same event yesterday, Maruti Suzuki MD & CEO Hisashi Takeuchi announced that the company is also now India’s leading exporter of electric cars, having shipped over 46,000 since production of the e Vitara began last year.

Goyal also complimented Tata Motors and Mahindra for their “world-class electric vehicles” in his speech. He said the Government is keeping an eye on company-wise import-export data to determine realistic progress towards indigenisation. Companies that can’t effectively localise production can compensate with exports, he said, also assuring the industry that the Government will extend support wherever needed.

Expanding trade partnerships and global competitiveness

As Chief Guest at the SIAM Convention, Goyal urged its members to seize opportunities emerging from India's recently signed trade partnerships, and be ready to serve the demands of global markets. He said the automotive sector will be one of the most important drivers of India's growth story. Nine free trade agreements have been signed over the past four and a half years, giving India access to economies with a combined GDP of around $60 trillion.

Domestically, there is plenty of opportunity for growth in India as well. ACMA has reported 16-17 percent growth, and multiple automakers have recorded over 20 percent growth, he said, driven by rising incomes and aspirations. Demand for bikes and premium vehicles is growing.

He also warned that competition will intensify as more international carmakers enter India, chasing our huge addressable market. However, another opportunity for India is that production is likely to move out of developed countries as costs rise. India provides a welcoming regulatory environment, capable workers, and strong industrial backing, he said, welcoming future investments in automobile manufacturing.

One specific warning was that Indian manufacturers should not develop lower-quality products for domestic sales than the ones they export. Goyal emphasised the need for products manufactured in India to meet global standards and expectations.

The India-UK free trade agreement is already in effect, and the far-reaching India-EU agreement will be operational by March next year, Goyal said, urging industry leaders to prepare to take advantage of it. India’s overall exports of goods and services touched $863 billion in the last fiscal year, and Goyal announced a target of $1 trillion for the current year. 

The minister also said AI will boost the automotive sector across various parameters including efficiency, R&D, skill development, business planning, and customer service. He said job roles may change, but jobs will grow, to allay fears of human redundancy.

Support for India’s auto manufacturing industry

Goyal spoke about specific government initiatives, such as global trade agreements for rare earth materials and magnets under the Critical Mineral Mission and the Pax Silica programme with the United States. The government has also rolled out a ₹1 lakh crore R&D Innovation Fund to back companies that invest in this area.

He said he has received strong expressions of interest from Japanese companies about partnering with India, while European companies continue to come here looking for engineering talent. Such partnerships can help build a skilled talent pool of Indian engineers, as well as strengthen domestic manufacturing of exportable components and technology.

India also needs to become self-sufficient in energy production and battery technology, with an eye on sustainable mobility. The Indian startup ecosystem is already coming up with compelling technology such as a motor without permanent magnets, which is currently being validated.  

In addition, Goyal said the government will support large automotive and auto component manufacturing projects in terms of land acquisition and infrastructure, with country-specific industrial parks also possible based on industry demand.