Foreign Government Plans to Elevate Indian Car Sector to Leading Global Position – Nitin Gadkari
The Indian automobile industry has seen substantial growth over the years, expanding from ₹7.5 lakh crore in 2014 to its current size of approximately ₹22 lakh crore. This growth has made it a significant contributor to the country's economy, being one of the key revenue churners for both the central and state governments.
India's ambition is to become the world's number one automobile industry, leveraging its position as the third-largest auto market globally. To achieve this goal, the industry is focusing on increasing exports, boosting domestic manufacturing capabilities, and investing heavily in sustainable and safety technologies.
The government is providing extensive support to elevate India's manufacturing sector to the global top spot. This includes significant investments in road safety, infrastructure, and innovation, aiming to make India a global auto manufacturing and innovation hub.
In terms of greener alternatives, India launched the National Green Hydrogen Mission in 2023, aiming to develop large-scale green hydrogen capacity. With projects approved worth $2 billion and expected investments exceeding $12 billion, green hydrogen is a key component in decarbonizing the automobile sector and associated industries. The country is also promoting electric mobility and renewable energy adoption, aligning with broader policies to reduce emissions and scale clean technology.
Demand for cleaner propulsion technology like electric powertrains, CNG, and hybrid systems is rising at a fast pace in India. Leading Indian car manufacturers such as Maruti Suzuki, Tata Motors, and Hyundai are responding to this demand by expanding their green technology portfolios. The government is also offering incentives and regulatory frameworks focusing on vehicle electrification, emissions reductions, and safety.
India's automobile industry is also a significant employment generator, creating approximately 4.5 crore jobs in the country. However, the minister has highlighted that the transport sector contributes to 40% of pollution in India, emphasizing the need for greener and alternative fuels. The minister has exhorted the industry to address this challenge by developing such fuels to reduce pollution.
India recently surpassed Japan to become the third-largest automobile market, but it still lags behind established leaders like the US and China in terms of size. The US automobile industry has a larger size, with approximately ₹78 lakh crore, while China's automobile industry is the second largest, with approximately ₹47 lakh crore. However, India's aggressive green energy initiatives and growing manufacturing strength position it to compete strongly against these established leaders.
In summary, India's path to becoming the world's top automobile industry involves expanding export markets and production scale, enhancing vehicle safety and infrastructure, significant investments in green hydrogen and other sustainable fuels, and accelerating electric vehicle adoption and aligning with national emission reduction goals. These combined efforts position India to compete strongly against established leaders like the US and China, especially by capitalizing on its large market, growing manufacturing strength, and aggressive green energy initiatives.
In line with the government's support for elevating India's manufacturing sector, the automobile industry is shifting its focus to include sports cars and high-performance vehicles, aiming to establish India as a key player in the global sports car market.
Moreover, as the nation moves towards decarbonizing its automobile sector, the integration of sports car technology with electric powertrains and green hydrogen is seen as an opportunity to showcase India's innovation in the field of sports and sustainable automobiles.
