Goyal urges Indian auto industry to raise quality, safety and global ambition
Commerce Minister Piyush Goyal called on automakers and component makers to strengthen product quality, safety, scrappage incentives and technology adoption. He also flagged a planned BIS-certification exemption for semiconductor and other high-tech manufacturers’ production equipment and components.
What happened
Commerce Minister Piyush Goyal urged India’s auto industry to improve quality, safety, vehicle scrappage incentives and technology adoption. He also said high-tech manufacturers, including semiconductor firms, will receive a planned exemption from mandatory BIS certification for production equipment and components.
Key facts
- 66th annual ACMA convention
- 13,501 components needed to manufacture a semiconductor chip
Why this matters
Strategic buyers should prioritize targets in automotive safety, testing, recycling, semiconductors and manufacturing automation as policy support strengthens the case for capability-led consolidation.
What to watch
- Formal notification defining the BIS exemption scope, eligible equipment, duration and documentation requirements.
- New or revised vehicle safety, quality, emissions, cybersecurity or component-standard regulations.
- Union Budget or ministry announcements on scrappage incentives, GST treatment, fleet replacement or recycling policy.
- Monthly vehicle scrappage volumes, registered vehicle-scrapping-facility capacity and used-vehicle replacement trends.
- Capex announcements in semiconductor packaging, automotive electronics, ADAS, battery systems and test infrastructure.
- Export order growth for Indian vehicles and auto components, especially to regulated markets.
- OEMs should map upcoming safety, quality and homologation gaps across domestic and export models, prioritizing crash safety, emissions, cybersecurity and software compliance.
- Component makers should pursue supplier-quality upgrades, end-to-end traceability and internationally recognized certifications to protect OEM business and compete for export contracts.
- Manufacturers should identify semiconductor, automation and test-equipment imports that could qualify for BIS relief, then accelerate capex approvals and vendor negotiations.
- Fleet operators, dealers and recyclers should prepare for a possible expansion of scrappage incentives by building vehicle sourcing, inspection and recycling capacity.
- Investors should favor suppliers with exposure to safety systems, electronics, testing, lightweighting, recycling and export-oriented precision components over low-differentiation legacy parts.