India warns automakers: genuine localisation required, not just nominal efforts

Commerce and Industry Minister Piyush Goyal has put automobile manufacturers on notice that nominal localisation efforts will not suffice, as the government intensifies scrutiny of supply chain authenticity in the sector. Goyal indicated that New Delhi will deploy company-wise import-export data and Importer-Exporter Code (IEC) numbers as tools to assess the genuineness of localisation claims and map the broader automotive supply ecosystem. The move reflects growing concerns that some manufacturers may be engaging in superficial localisation practices while maintaining significant import dependencies. By leveraging detailed trade documentation, the government aims to distinguish between companies making genuine investments in domestic sourcing and those merely creating the appearance of localisation for regulatory or incentive purposes. The initiative underscores the government's commitment to building a robust and self-reliant automotive industry, with an emphasis on substantive local value addition rather than cosmetic compliance.