Govt aims to grow auto sector turnover to 15 lakh crore in 5 years: Gadkari

Union Road Transport Minister Nitin Gadkari has said that the government aims to increase the turnover of the automobile industry to 15 lakh crore within the next five years as against the current turnover of 7.5 lakh crore, out of which 3 crore comes from exports.

File photo of an automobile assembly line used for representational purpose  only. (Bloomberg)
File photo of an automobile assembly line used for representational purpose  only.

While speaking at the inauguration of the Maruti Suzuki and Toyota Tsusho Group's government-approved scrapping facility in Greater Noida, the minister stated his vision for the country's automobile industry. “My aim is to make the auto industry to the volume of 15 lakh crore within the next five year."

While India is aiming for net zero carbon emissions by 2070, Gadkari also highlighted that the government has been encouraging the usage of CNG, LNG, green hydrogen, ethanol fuels and electric vehicles in the transportation system to achieve this target. The target was recently announced by Prime Minister Narendra Modi at the COP26 summit.

Trending Cars

Find more Cars

The country's current import of fossil fuel is amounts to 8 lakh crores and this figure could reach as much as 25 lakh crores in the next five years. To bring this down and encourage the use of alternate fuels, the government has been working on diversifying agriculture towards energy and power sectors.

Also Read : Govt will push EV adoption but will not stop registration of ICEs: Nitin Gadkari

Bioethanol is a motor fuel that comes from sugarcane and molasses and the government has already given permission for production of bioethanol from rice, corn and foodgrains as well as decided to open ethanol pumps just like petrol pumps. "It is a win-win situation for all stakeholders. It can help in tackling pollution and it is also good for the tribal, agricultural areas of the country," Gadkari said.

He also spoke about the importance of vehicle scrappage policy and opening of such centres, stating that this will generate at least 2 lakh jobs directly and will boost the sales of automobiles. "Through the vehicle sales, incremental GST revenue worth 30,000-40,000 lakh crore is also generated, which is beneficial for the government as well," he added.

Also Read : EV prices will match that of petrol, diesel vehicles in 2 years: Nitin Gadkari

Further, scraping will provide raw materials like aluminium, steel and copper that will be made available at lower costs to reduce the production cost of the vehicles, reducing raw material costs by at least 33 per cent. "It will reduce our dependence on imports as we still import materials like aluminium, copper and many other things. The industry's issue of shortage of semi-conductors will be resolved by this policy," Gadkari added.

(with inputs from ANI)

First Published Date: 24 Nov 2021, 11:43 AM IST
Shopping Bag Shop Now
74% OFF
Microfiber Car Cleaning Soft Brush Ideal as Mop Duster, Washing Brush with Long Handle, Dust Cleaner Car Wash Brush with Handle, Soft Brush Scratch Free, Cleaning Dashboard Curved Design - Grey
Rs. 389 Rs. 1,499
55% OFF
Antson Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable, Portable,Rechargeable Vacuum (2 in 1)
Rs. 899 Rs. 1,999
74% OFF
IDELLA Car Duster, Extendable Long Handle Microfiber Car Duster Exterior Scratch Free Car Cleaning Tool, Car Dust Brush for Truck, Pickup, SUV, RV, Motorcycle, Vehicles Cleaning,(Multicolor)
Rs. 238 Rs. 899
1% OFF
GOODAIR Clear Car Windshield Enhancer | Classic |12 Tablets
Rs. 295 Rs. 299

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
Powered by: Acko Logo
Please be noted that any information provided herein above will be received by Acko General Insurance Limited (“Acko”). By mentioning the above information, you agree to provide these details and information to Acko.
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.