Indian automobile industry to become number one in the world in five years: Nitin Gadkari

Nitin Gadkari, the Union Minister of Road Transport and Highways, expressed confidence in India becoming the largest automobile market in the world in the next five years at the Federation of Automobile Dealers Association’s seventh Retail Conclave in New Delhi on Wednesday.

“When I took over as minister, India was at number seven. Six months ago, we surpassed Japan to become the third-largest market in the world. It is difficult, but I believe we can become the largest automobile market in the world, because the quality of our vehicles is good. The cost is less, ” Gadkari said.

The minister also revealed that the chairman of Mercedes-Benz, Ola Källenius, told him that the German maker of luxury cars is going to increase the productivity of its existing manufacturing facility in India, and is going to export electric Mercedes-Benz vehicles from India. “All big brands have started manufacturing in India. The potential of their domestic market is high, but the potential of their international market is even greater, which is why I say that the future of this industry is good,” he said.

India’s demographic dividend, the largest young manpower and skilled labour available in the world, and reasonable rates of electricity are the reasons behind the bright future of the automobile industry in India, according to Gadkari. “I will give you JCB’s example. Their office is in London. They told me that they are exporting JCB equipment to the U.S. from India, and their quality is good. The way in which the ecosystem is developed in India, where there is potential for export, and we have got all kinds of capabilities to make that mark in the world,” he said.

Gadkari also stressed the importance of increasing the manufacturing of electric buses in the country. “Today, in Delhi, you see electric buses everywhere. Currently, we have the capacity to manufacture 50,000 to 60,000 buses per year, and the current requirement is for one lakh buses per year. So naturally, now it is a problem for all of us,” he said. 

The minister also reinforced the potential of the Indian automotive industry towards exports, citing the example of the two-wheeler industry. “Today, the two-wheeler industry in India is exporting 50% of what it is manufacturing. Even in construction equipment and electric trucks, there is a huge export market,” averred Gadkari.