PM Modi urges auto industry innovation for Viksit Bharat; pushes for EV acceleration
Prime Minister Modi urged the Indian auto industry to innovate for Viksit Bharat by 2047. Adviser Tarun Kapoor stressed accelerating the electric mobility transition for energy security. He warned of increasing restrictions on four-wheelers, esp...
New Delhi: Prime Minister Narendra Modi on Thursday exhorted India's automobile industry to innovate and pursue excellence to help chart a bold pathway towards the Viksit Bharat vision by 2047, while his adviser Tarun Kapoor asked automakers to accelerate the shift to electric mobility.
The Indian automotive industry's contribution to the economy exceeded Rs 22.75 lakh crore. The industry also accounted for about 15% of the country's GST collections in fiscal 2026.
In a message to the Society of Indian Automobile Manufacturers (SIAM), Modi said recent free trade agreements providing greater access to international markets put the Indian automobile sector in a strong position to expand its global presence.
The sector continued its steady performance across domestic markets as well as exports in FY26, driven by a moderation in GST rates.
In his message, read out by outgoing SIAM president Shailesh Chandra, Modi said this journey would bring transformative opportunities and significant growth for the mobility sector, while further strengthening transport as a key pillar of national development.
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"India has been one of the fastest-growing major economies in the world over the last decade. As our economy grows, the demand for mobility is also rising," he said.
The transition towards cleaner mobility has become more urgent amid India's dependence on imported petroleum and heightened geopolitical risks, said Kapoor. "But on the four-wheeler side, I can tell you that more and more restrictions will come. So, therefore, please be prepared, and we need to push electric in a big way," Kapoor told delegates at the 66th Annual Convention of SIAM held in New Delhi.
Restrictions have already begun in Delhi and the National Capital Region, and could spread to other parts of the country, he warned.
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Kapoor identified heavy vehicles, particularly trucks and buses, as the biggest challenge in the transition to electric mobility. Continued dependence on diesel is a concern for India's energy security, he said, adding that the industry must "move into electric in a big way".
He called for manufacturing costs to be brought down and for the industry to explore financing models, battery swapping and better charging infrastructure along highways to make electric vehicles more affordable.
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On battery imports and domestic manufacturing, Kapoor said the government was examining possible taxation measures. "On taxation front, there are certain issues to be sorted out because people keep meeting me about import of batteries and whether more manufacturing is happening in India, can we put some restrictions there," he said.
The government is considering measures to help domestic manufacturing take off gradually, he said and warned the industry to prepare for policy changes. "This is an area where a lot of thought is now going on in the government also," he said.
Reforms boosting capabilities
The Prime Minister, in his message, said India was also taking significant strides towards a cleaner and more sustainable mobility ecosystem. "The rapid expansion of charging infrastructure is encouraging greater adoption of electric vehicles and creating new opportunities for innovation," he said.
He highlighted the government's reforms to improve ease of doing business, including the removal of redundant laws and unnecessary compliances. Initiatives such as the production-linked incentive scheme and Make in India, he said, further strengthened the manufacturing capabilities of the automobile industry.
Subsidies to taper
Heavy Industries secretary Kamran Rizvi said government support and subsidies for electric mobility would eventually come to an end, and the industry must prepare to sustain the transition to e-mobility on its own.
Against this backdrop, Chandra, the outgoing SIAM president who is also chief executive of Tata Motors Passenger Vehicles, said the next phase of EV growth would require closer industry-government collaboration to build infrastructure and deepen localisation. Industry initiatives already helped cut imports by more than Rs 20,000 crore, he said. EV registrations rose nearly 25% to 3.5 million units in FY26.
SIAM gets new president
The Society of Indian Automobile Manufacturers elected Ashok Leyland managing director and CEO Shenu Agarwal as its president for 2026-27, succeeding Shai
