Keynote speech by Commissioner Šefčovič at the 65th Annual Session of the Automotive Components Manufactures Association of India

Ladies and gentlemen, good afternoon.

It is a pleasure to be here at the 65th Annual Session of the Automotive Components Manufactures Association of India.

And I am especially happy to be here alongside Minister Goyal, dear Piyush, with whom I have been working intensively, together with our teams, to make progress on a groundbreaking Free Trade Agreement between the European Union and India.

This is my third visit to India this year. Every time I come to your beautiful country, I admire the impressive growth of the economy and the speed and scale of change happening across the entire nation.

India is fast becoming a key engine of the global economy. And your potential for further expansion, mainly thanks to your people, seems boundless.

We find ourselves in a challenging world. Geopolitics and global trade are being disrupted.

And we need to embrace the possibilities offered by our new reality as much as protecting ourselves from the risks.

Which is why we are working on a deal to unlock investment, reduce barriers, expand market access, and enhance supply chains, to the benefit of both sides.

As part of wider efforts to boost our vital partnership in the face of shifting global geopolitical and economic sands.

We all understand the importance of the economic, trade and investment relationship enjoyed by the EU and India. We have a mutual interest in engaging more closely on bilateral and global issues.

And I dont think it is beyond reason to say that the quality of our relationship is important not only for ourselves, but the entire global economy.

The EU and India boast two of the largest economies in the world, build on innovation and economic opportunity, and underpinned by our shared democratic principles.

We enjoy an enduring partnership, with a solid foundation for cooperation, especially in sectors where innovation meets industry.

Let me recall that in 2024 the EU was Indias largest trading partner, ahead of the U.S. and China. More than 6,000 European companies operate in India, while overall bilateral trade in goods hit 140 billion euros in 2023.

And while trade between our economies has grown by around 90% in the past decade, there is still a lot of room for further growth.

Our industries have the potential to forge synergies that drive technological advancements, enhance supply chains, and accelerate innovation.

The automotive sector which powers our economies should be at the centre of the partnership.

As Karl Benz, the German inventor of the automobile, is reputed to have said: “The love of inventing never dies.”

Europes expertise in engineering and green technologies, combined with Indias growing market and manufacturing capabilities, offers a unique blend that can foster growth, create jobs and promote sustainability in both regions.

For car and automotive component manufacturers, the EU-India relationship is not just about trade.

Its about high-value added investment that will create thousands of jobs in your car factories, such as in the Volkswagen and Mercedes-Benz plants in Pune.

And across the entire ecosystem supplying cars parts, equipment, and software.

Its also about sharing best practices in manufacturing, investing in research and development for next-generation vehicles, working on standards, and addressing global challenges like climate change through cleaner, more efficient technologies.

The automotive market in India is expanding and thriving.

My goal is to ensure that the FTA facilitates two-way trade flows between India and the EU under conditions of tariff liberalisation for all components, from engines to brakes.

This would be a win-win scenario for our industries and would in particular facilitate the introduction of advanced new technologies into India.

By combining the power of our automotive markets – the worlds third and fourth largest  – we can lead the charge in developing cutting edge combustion engines as well as electric vehicles with advanced battery technologies, and smart mobility solutions that meet the needs of a changing world.

We are now maximising our efforts to finalise negotiations by the end of the year, as agreed by European Commission President von der Leyen and Prime Minister Modi.

We are striving to put in place an economically meaningful, win-win package that brings real added value to businesses and consumers both in Europe and here in India.

That enables us to work together in the areas where cooperation makes sense.

That provides you, the car manufacturing industry, with the ability to create a future where innovation and sustainability drive progress.

Talks are ongoing – and I must say that, as always, Piyush is a fantastic host when we have the pleasure of coming to India for negotiations – and, given the political will on both sides, I think we are set to meet the deadline.

But the FTA is only part of the wider push to bring the EU and India closer together. Our strategic partnership is becoming ever-more important.

Be it in bringing prosperity and strengthening supply chains.

Or advancing in our climate goals.

Or in developing critical emerging technologies.

Or in countering threats and working towards a safer world, both regionally and globally, through security and defence.

Of course, we will not agree on everything. But as major democracies, in an increasingly uncertain world, there are a lot of areas where we can work together.

Producing mutually beneficial and real outcomes.

And I am sure that the automotive sector will ultimately be a very clear winner.

Thank you.