India's auto industry will become world No.1 soon, says Nitin Gadkari — fast charging, EV push to drive growth

India’s automobile industry is entering one of its strongest phases in years, with Union Road Transport and Highways Minister Nitin Gadkari telling Parliament that the sector could become the largest in the world within the next few years. Speaking during a discussion in the Lok Sabha, the Minister said the country has already moved from the seventh position to the third-largest automobile market, overtaking Japan, and is now “within striking distance” of the global top spot.

Gadkari said new investments, rising domestic demand, and rapid advances in alternative fuels and electric mobility have reshaped the industry’s growth trajectory. He emphasised that coordinated work across ministries - including efforts on biofuels, green hydrogen, and EV charging infrastructure — is positioning India for sustained expansion.

India climbs to No.3 globally

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Gadkari said India’s automobile sector is now valued at Rs 22 lakh crore, placing it behind only the United States and China. The US remains the world’s largest market with an approximate size of Rs 79 lakh crore, while China’s automobile sector is valued near Rs 49 lakh crore. He noted that this dramatic shift has happened in just a decade. “When I took charge, India was seventh. Today, we are third,” he said, adding that domestic manufacturing capacity, localisation efforts and a recovery in demand have lifted the sector.

Push for cleaner, cheaper alternative fuels

The Minister highlighted the central government’s priority of cutting fossil-fuel imports worth Rs 22 lakh crore annually. The government is pushing for wider adoption of biofuels, ethanol, green hydrogen, compressed biogas and other alternative fuels to reduce dependence on crude oil and cut pollution levels. He also underscored the link between clean mobility and Delhi’s worsening air quality, saying alternative fuels will be essential to ease long-term environmental pressures.

Faster rollout of EV charging networks

Gadkari said the rapid expansion of electric mobility demands a universal fast-charging network that works across two-wheelers, three-wheelers, cars, buses and heavy-duty trucks. Research is underway to standardise connectors and charging technology across categories.

More than 400 start-ups are currently working in the electric two-wheeler ecosystem alone, he said, calling it a sign of India’s growing innovation strength in mobility.

GST reforms and rising sales boost momentum

The Minister said recent GST rate reductions for the automobile sector have encouraged more buyers to return to the market. This, combined with a broader post-pandemic spending revival, has led to strong growth in passenger vehicles, commercial vehicles and electric mobility.

The overall ecosystem - from manufacturing to supply chains, EV firms, and battery-technology companies - is expanding at a pace not seen in decades.

India’s EV market poised for Rs 20 lakh crore opportunity

Separately in Parliament, Gadkari said India’s EV market could reach Rs 20 lakh crore by 2030, potentially generating five crore jobs.

He shared updated data showing:

• 57 lakh EVs registered so far
• EV car sales up 20.8 per cent
• EV two-wheelers up 33 per cent
• EV three-wheelers up 18 per cent

He added that lithium-ion battery prices have fallen sharply to USD 55 per kWh, improving affordability. The recent discovery of six million tonnes of lithium reserves in Jammu & Kashmir could further accelerate domestic manufacturing. Calling hydrogen the “fuel of the future”, he said India must aim to become an exporter of clean energy under the Prime Minister’s vision of Atmanirbhar Bharat.