India’s EV market seen at ₹20 lakh crore by 2030, could create 5 crore jobs: Gadkari
ADVERTISEMENT
India’s electric vehicle (EV) market could expand to ₹20 lakh crore by 2030 and generate around 5 crore jobs, Union Road Transport and Highways Minister Nitin Gadkari said on Wednesday, underlining the scale of opportunity he sees in the country’s transition towards cleaner mobility.
Speaking at a summit organised by the CII-ITC Centre of Excellence for Sustainable Development, Gadkari said, "57 lakh electric vehicles are currently registered in India, translating into EV market penetration of about 7%." He stated that the government expects the sector’s expansion to support both employment generation and a broader transformation of the automobile industry.
EV bus demand twice current manufacturing capacity
Gadkari highlighted a significant capacity gap in electric buses, saying India currently has annual demand for around 1 lakh electric buses, while domestic manufacturers are able to produce only 50,000-60,000 units a year.
The minister also pointed to the export strength of India’s established two-wheeler manufacturers. Bajaj Auto and Hero MotoCorp, he said, export more than 50% of the vehicles they produce, highlighting the potential for Indian manufacturers to deepen their global footprint as the industry shifts towards electric mobility.
Gadkari said India’s automobile industry is well placed for growth because of its availability of trained manpower, competitive manufacturing costs and vehicle quality. He added that major global automobile companies have established operations in the country.
Auto industry size rises from ₹14 lakh crore to ₹22 lakh crore
Gadkari said the size of India’s automobile industry has increased significantly since he took charge as transport minister, rising from ₹14 lakh crore to around ₹22 lakh crore.
He said India currently ranks behind the US and China, whose automobile industries are valued at around ₹78 lakh crore and ₹47 lakh crore, respectively. Gadkari said the government’s target is to make India the world’s No. 1 automobile manufacturing hub within five years.
“Within five years, our target is to make India’s automobile industry the number 1 in the world… it is difficult, but not impossible,” he said.
Logistics costs targeted at 8%
Gadkari also linked transport infrastructure and energy transition with India’s global competitiveness. He said the country spends around ₹22 lakh crore on importing fossil fuels, while dependence on fossil fuels also contributes to pollution.
On logistics, the minister said the government is targeting a reduction in logistics costs to 8%, arguing that lower transportation costs will be critical to improving India’s competitiveness in global markets.
He cited a recent study by IIT Chennai, IIT Kanpur and IIM Bangalore, which found that the development of expressways and economic corridors had helped bring India’s logistics cost down to around 10% from 16% earlier. Gadkari said further reductions would strengthen the country’s manufacturing and export competitiveness.