Indian auto industry eyes becoming leading global export hub. Here’s how

India's automotive sector is experiencing significant growth, a trend mirrored at the 64th SIAM Annual Convention. The focus has shifted from merely reducing imports to expanding exports, aiming to make the Indian automobile industry truly "atma nirbhar" (self-reliant) and positioning it as a leading global auto manufacturing hub—an ambition the government is actively pursuing. The Indian automobile industry is currently the third largest auto industry across the world.

Prime Minister Narendra Modi underscored the need for rapid and sustainable progress in the sector, stating, "The road ahead demands that our progress is rapid while also being sustainable. Working on greener and cleaner mobility is a vital step in this direction."

Nitin Gadkari, Union Minister of Road Transport & Highways, stated that the automobile industry plays a pivotal role in realising the Prime Minister's vision of transforming India into a five trillion-dollar economy and elevating it to the third largest globally. Our goal is to become the number one auto manufacturing industry worldwide. Innovation and sustainable practices are crucial as we target carbon neutrality by 2070.

H. D. Kumaraswamy, Union Minister of Heavy Industries and Steel, emphasised the importance of aligning industrial growth with sustainability goals. He explained that government policies are fostering a conducive environment for industry growth and sustainable development."

The government's strategy is clear: by focusing on cleaner technologies, Indian vehicles will meet global demand for sustainable solutions. Hisashi Takeuchi, Managing Director & CEO of Maruti Suzuki India Ltd., echoed this sentiment, stating, "India's automotive future is bright, with clean energy technologies and biofuels reducing dependency on imports and boosting exports. Inspired by Prime Minister Modi's vision for decarbonization, the industry can propel India to lead in sustainable practices globally."

More than just sustainability

To achieve its ambitious goals, the Indian automobile industry will focus not only on sustainability but also on delivering high-quality products. Nitin Gadkari emphasised that India's advantage lies in its skilled, cost-effective labour force and expertise in manufacturing valuable products. These strengths, he believes, will help India rise to the top of the global automotive industry.

In line with this vision, the government is taking steps to enhance research and testing in vehicle manufacturing. A world-class testing agency will be established at the CIIT Training Institute in Pune, with a sanctioned budget of ₹450 crore. Gadkari explained that the government has decided to start a new venture at CIIT Pune with international standards, offering all the necessary facilities for testing and research. “My department has already sanctioned ₹450 crore for this project, and the Detailed Project Report (DPR) is in progress. Within the next three months, we aim to begin this important initiative, which will provide extensive services to the industry," he concluded.

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