Gadkari sets five-year target to make India No. 1 in automobile industry

India aims to become the world’s largest automobile industry within the next five years, Union Minister for Road Transport and Highways Nitin Gadkari said on Wednesday. Speaking at an event, the minister stressed that the country has the skilled manpower and presence of global automobile companies to achieve this goal.

"Within five years, our target is to make India's automobile industry the number 1 in the world... it is difficult, but not impossible," Gadkari said.

He highlighted that India produces good-quality vehicles at lower costs, making the country a preferred hub for global manufacturers. The size of India’s automobile industry has grown from ₹14 lakh crore when he took charge to ₹22 lakh crore at present. In comparison, the US automobile industry is valued at ₹78 lakh crore and China’s at ₹47 lakh crore.


Gadkari noted that India spends ₹22 lakh crore annually on fossil fuel imports, which contributes to pollution. He pointed out that Indian companies are now making electric cars, buses and trucks at competitive prices. "The cost of lithium-ion battery is also reducing. In due course of time, the price of petrol, diesel vehicles and electric vehicle will be the same," he said.

On electric buses, Gadkari stated that India has the capacity to produce 50,000–60,000 units a year against the requirement of 1,00,000. "We need to increase production of electric buses... There is a huge market for exports also. This is the opportunity for electric vehicle companies," he said.

The minister also said the government is encouraging flex-fuel engines in agricultural equipment. Addressing concerns on the rollout of E20 petrol, he remarked, "Everywhere there are lobbies, there are interests... petrol lobby is very rich."

Ethanol-blended fuel, launched last year by Prime Minister Narendra Modi, is seen as a step towards cutting India’s oil import bill. Ethanol can be produced from sugarcane, broken rice and other farm produce. Currently, Indian vehicles can run on E20 petrol with minor modifications to prevent corrosion.

with PTI inputs