European Carmakers Eye New Manufacturing Plants in India, Says Goyal

Goyal, speaking to Business Standard, indicated that a number of European car manufacturers are evaluating the Indian market for setting up local manufacturing units. He noted that the interest stems from India's growing demand for passenger vehicles and the strategic advantage of producing within the country.

If realised, these plants could boost domestic supply, create jobs and potentially lower the cost of imported models by avoiding tariffs. Goyal highlighted that Europe’s shift toward electric and hybrid models aligns with India’s push for greener mobility, making the prospect attractive for both sides.

The timeline remains uncertain, as approvals from central and state authorities, land acquisition and supply‑chain arrangements will need to be finalised. Goyal cautioned that while the intent is strong, actual investment decisions will depend on policy clarity and market conditions.