India’s Automotive Sector Gears Up for Global Dominance

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India (Commonwealth) _ Road Transport and Highways Union Minister Nitin Gadkari expects India’s vehicle industry to surpass all others worldwide in the next five years.

Gadkari emphasized the industry’s remarkable growth during his remarks at the Amazon Smbhav Summit on Tuesday, pointing out that it has increased from Rs 7 lakh crore to Rs 22 lakh crore since he took office.

With a market size of Rs 78 lakh crore, the USA is currently the global leader, followed by China at Rs 47 lakh crore. With its current valuation of Rs 22 lakh crore, India has a lot of potential, Gadkari said, adding, “I am confident that India will emerge as the world’s leading automotive market  within 5 years.”

The ministry indicatedWith a market size of Rs 78 lakh crore, the USA is currently the global leader, followed by China at Rs 47 lakh crore. With its current valuation of Rs 22 lakh crore, India has a lot of potential, Gadkari said, adding, “I am confident that India will be the number one automobile market in the world within 5 years.”

The minister cited the existence of top international automakers in India as an unmistakable indication of the nation’s rising prominence in the sector. Aiming to reduce logistics expenses to 9% in the next two years, he also presented his ministry’s ambitious plans to improve India’s logistics infrastructure.

Currently, logistics expenses are 16 percent in India, 8 percent in China, and about 12 percent in the USA and Europe. Gadkari stated, “The government has set a target to lower logistics costs, and we aim to bring it down to 9% within 2 years.”

Additionally, Gadkari highlighted a number of infrastructural initiatives that will significantly cut down on travel times between major cities. For instance, Gadkari plans to reduce the current nine-hour travel time from Delhi to Dehradun to just two hours by January 2025. In the near future, we anticipate a significant decrease in travel times between Chennai and Bengaluru, as well as between Delhi and Mumbai.

The minister underlined in his speech how crucial it is for the nation’s transportation system to switch to biofuels and alternative fuels. He clarified that utilising bioethanol in automobiles may aid in cutting pollution levels in addition to fuel expenses.

Gadkari also revealed plans to use cutting-edge recycling technologies to turn biological waste into hydrogen fuel and other useful resources. “At the moment, only 80 lakh tons of waste are utilized,” he remarked, highlighting the significant amount of municipal waste generated in Delhi.

Our goal is to produce hydrogen from organic waste. Through waste segregation, we can remove recyclable materials including glass, metals, plastic, and gasoline. We also have technologies that can produce green hydrogen from garbage.


Gadkari’s comments highlight the government’s resolve to revolutionize India’s logistics and transportation industries and establish the nation as a global leader in sustainable energy projects as well as the automotive sector.

According to 2022 data, India’s automobile sector ranks fourth globally in terms of both output and valuation. As of 2023, India is third in the world for automobile sales.

With a valuation of over $100 billion as of April 2022, India’s automobile sector contributes 7.1% of the nation’s overall exports and 8% of its total value. GDP. 38% of Indian families own a car, per the 2021 National Family Health Survey. Government figures show that there are just 22 cars per 1,000 persons in India.

Hindustan Motors, Hradyesh, ICML, Kerala Automobiles Limited, JSW MG Motor India, Tara International, Force Motors, Tractors and Farm Equipment Limited, Eicher Motors, Royal Enfield, Sonalika Tractors, Maruti Suzuki, Hyundai Motor India, Tata Motors, Ashok Leyland, Mahindra & Mahindra, and Vehicle Factory Jabalpur are some of the country’s leading automakers.

Three “clusters” comprise the majority of India’s automobile manufacturing sector. With a 35% revenue share and 60% of the nation’s automobile exports in 2010, Chennai was the largest city. It was also home to Ford, Hyundai, Renault, Mitsubishi, Citroën, Datsun, Caparo, Mini, Daimler, Nissan, BMW, and Hindustan Motors.

Heavy Vehicles Factory and Engine Factory Avadi. With a 33% market share, the western cluster is located along the Chakan corridor near Pune, close to Mumbai, Maharashtra. Aurangabad is home to Audi, Volkswagen, and Škoda. Mahindra & Mahindra operates an assembly plant for engines and SUVs in Nashik. The region is home to assembly facilities for General Motors, Tata Motors, Mercedes-Benz, Land Rover, Jaguar, Fiat, and Force Motors.

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