Commerce and Industry Minister Piyush Goyal on Thursday cautioned about "black sheep" among automakers that are not making adequate efforts to increase localisation in India, asking them to review their indigenisation programmes afresh. He said some automakers claim they are increasing indigenisation by setting up another company in India, which imports goods at nominal value and sell their cars in the domestic market.
Citing examples, he said auto firms from Japan are forging partnerships with India, building ecosystems and further indigenising and making the world's most efficient and competitively priced cars in India.
"The world's companies today are looking up to all of you ...there are, of course, a few black sheeps also; I will not name anybody. They need to really look up their indigenisation programme afresh," he said at a SIAM event here.
"You may not realise it, but I'm watching surely the level of indigenisation, and for me the yardstick is very simple. I'm looking at the company-wise figure of import, the companies-wise figure of exports and thanks to artificial intelligence... I have everybody's IEC (import export code) numbers; I can do all sorts of data analysis," he said.
He said companies may claim to have indigenised their operations or achieved a high level of localisation, but the government can verify this by examining the company and its supplier ecosystem and linking the two IEC codes.
"And in certain things, if you're not able to indigenise, make up for it with exports, expand your exports. And we are here to create all the enablers, whatever help you require," Goyal said.
Complementing Maruti Suzuki India for leading passenger vehicle exports, Goyal said, "The only statistic that I can recognise and appreciate is the brilliant cars that you (industry) exported last year. Maruti Suzuki is today exporting probably half of those million units that have been exported." Maruti Suzuki has been the leading exporter of passenger vehicles from India for five consecutive years. The company's car shipments are now going to over 120 countries, including Europe and Japan. The auto major exported 4.47 lakh units in FY 2025-26.
In the April-June quarter, the company's overall share in PV exports stood at 55 per cent. Six out of 8 top exported cars from India during the period were from Maruti Suzuki stable.
The company also reported a 97 per cent market share in EV shipments in the first quarter of this fiscal year.
Goyal called upon the Indian automotive industry to seize the opportunities emerging from India's expanding trade partnerships, growing domestic market and global shifts in manufacturing.
He urged the industry to deepen localisation, invest in technology, innovation, research and development, expand exports and prepare itself to serve global markets.
Goyal said the automotive sector would be one of the most important drivers of India's growth story in the years to come.
The minister said India should not be satisfied with merely serving the domestic market and urged companies to "think globally".
He said global competition would intensify as more global car companies come to India and stressed that companies must use economies of scale in India to serve markets across the world.
He observed that production would increasingly shift out of developed countries because of unaffordable costs, regulatory overburden, shortage of youth and talent, and inadequate industrial capacities.
Companies that anticipate these changes, plan for the future and seize emerging opportunities would benefit, while those remaining in the comfort of their existing businesses and markets risk being left behind.
He cautioned that companies should not produce products of a different quality for India compared to their international or domestic markets.
Referring to instances where vehicles were reportedly not being exported because their Indian designs were considered suboptimal compared to globally sold models, he urged the industry to ensure that products manufactured in India meet global standards.
The minister said the government was opening pathways to tremendous opportunities for the automotive industry through trade agreements.
On India's exports, he said the exports were growing at around USD 9 billion a month during the first five months, with merchandise exports growing faster than services after many years.
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With a gap of around USD 29 billion to the target of USD one trillion for 2026-27 over the remaining seven months, he urged industry to raise the monthly pace to USD 12 billion.
Goyal said AI would help the automotive sector expand capabilities, improve efficiency and competitiveness and enhance customer service, while creating new job profiles, stressing that "job roles may change, but jobs will grow".
He also urged the automotive industry to look more actively at export markets, saying that exports could potentially double every two years.
Goyal added that as the global environment became more complex, India was seeking to secure the "four Ms of mobility" through trusted global partnerships - molecules, modules, megawatts and markets.
On molecules, he referred to rare earths, magnets and the Critical Mineral Mission, and said India was exploring linkages in some FTAs with the availability of rare earths and critical minerals, promoting ocean exploration for special minerals and participating in Pax Silica with the United States.
On modules, he urged companies to examine components they continue to import and pursue technology collaborations and partnerships wherever required.
On megawatts, he said India needed to become self-sufficient in energy and promote indigenous energy sources.
He stressed the need to become self-sufficient in crude oil, LPG and LNG, and to develop or bring to India technologies for batteries and other technologies.
He further said the government was willing to support large automotive and auto-component projects through land and plug-and-play infrastructure and invited industry to identify locations for such ecosystems.
He also offered to facilitate country-specific industrial parks based on industry demand.
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