Govt Working to Make Auto Sector No.1 Globally in 5 Years: Gadkari

Union Minister of Road Transport and Highways, Nitin Gadkari, has once again underlined India’s ambitious vision for the automobile sector.

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Govt Aims to Make India’s Auto Sector No.1 Globally in 5 Years

Speaking at a recent event, Gadkari declared that the government is working on a detailed roadmap to make India’s auto industry the number one in the world within five years. This bold statement reflects both the growing strength of the domestic automobile market and the government’s push towards green mobility and sustainable growth.

India’s Auto Industry: A Key Driver of the Economy

India’s automobile sector is already among the largest in the world. Contributing nearly 7% to the national GDP and employing more than 3.5 crore people, the industry plays a central role in India’s economic growth. From two-wheelers to commercial vehicles, Indian manufacturers have consistently increased their production capacity and global presence.

In recent years, India has also become a leading hub for small car manufacturing. Major global brands are expanding their operations in India due to cost advantages, skilled workforce, and rising domestic demand. According to government data, India has become the third-largest automobile market, overtaking Japan, and now the industry wants to move to the top spot globally.

Gadkari’s Roadmap for Global Leadership

Nitin Gadkari’s vision rests on three main pillars:

• Green Mobility and EV Expansion: The government is pushing electric vehicles aggressively. By 2030, EVs are expected to cover 30% of sales in the passenger car segment and up to 70% in two- and three-wheelers.

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• The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, along with PLI (Production-Linked Incentive) programs, is driving this transformation.

• Export Competitiveness: India aims to strengthen its export base by tapping new global markets. Low production costs and technology adoption will help Indian automakers export more both in the EV segment and traditional vehicles.

• Innovation and Alternative Fuels: Gadkari has been vocal about promoting flex-fuel vehicles, biofuels, and hydrogen-based mobility solutions.

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• By moving beyond crude oil dependency, India can not only save billions in imports but also position itself as an innovation-driven automotive hub.

Electric Mobility: The Game-Changer

Electric vehicles are the heart of this transformation. With rising concerns about air pollution and fossil fuel use, EV adoption is becoming a priority globally. In India, the government’s EV policy has triggered huge investments from companies like Tata Motors, Mahindra & Mahindra, Ola Electric, Hyundai, and international players.

Battery manufacturing plants, R&D centers, and EV charging networks are rapidly expanding.

Already, India has witnessed record growth in EV sales in 2024–25, and this momentum is expected to continue. Gadkari has even stated that he wants EV costs to match petrol and diesel vehicles in the near future, making them accessible to all sections of society.

Push for Alternative Fuels

Beyond electric mobility, India is also diversifying into biofuels, ethanol, and hydrogen. Cars and buses powered by ethanol-blended petrol and CNG alternatives are gaining traction.

Hydrogen fuel-cell vehicles remain at a pilot stage but could reshape the future of long-haul and heavy-duty transport.

The government has already mandated blending of biofuels with conventional fuel, a move that reduces import bills while supporting Indian farmers. According to Gadkari, India will become a leading nation in green hydrogen, providing clean energy solutions for the auto sector.

Infrastructure and Policy Support

For India to be number one globally, infrastructure plays a critical role. The expansion of highways, logistics parks, EV charging corridors, and advanced transport systems is already underway.

India is constructing world-class expressways and aiming to reduce logistic costs to less than 10% of GDP, which would boost the competitiveness of auto exports.

Policy reforms such as the PLI scheme for the auto sector, support for battery storage technology, and easier financing for EV buyers are also strengthening the ecosystem.

Opportunities for Global Investors

India’s fast-growing middle class, digital adoption, and strong manufacturing ecosystem present unmatched opportunities for global investors. International automakers are leveraging India as both a manufacturing hub and a growing consumer market.

With government assurances on ease of doing business and green energy incentives, investment inflows in the sector are set to rise.

Challenges to Overcome

Despite optimism, challenges remain. Slow EV charging infrastructure rollout, high battery costs, and global competition will test India’s progress. Availability of raw materials like lithium and cobalt for battery production is another concern.

Moreover, maintaining quality and safety standards for vehicles is crucial to compete internationally.

However, with government involvement and private sector innovation, these hurdles can be addressed effectively. Gadkari’s confidence stems from the pace of change already witnessed in recent years.

Conclusion

The statement by Nitin Gadkari signals India’s determination to transform the automotive landscape. By combining renewable energy, advanced technology, and strong policy frameworks, the country aims to move from being the third-largest auto market to the top spot globally.

If successful, this push will not only create millions of jobs but also position India as a leader in sustainable and green mobility.