Union Minister of Road Transport and Highways Nitin Gadkari shared an ambitious and optimistic vision for India’s automotive industry, predicting exponential growth and a significant rise in the country’s global standing. Speaking at the Business Today Mindrush 2025 forum, Gadkari expressed confidence that the sector is on track to become the second-largest automotive market in the world within the next few years — a feat driven by technological advancements, government policies, and the rapid rise of electric vehicles (EVs).
Gadkari noted that the size of India’s automotive industry has grown remarkably over the past decade, expanding from Rs 14 lakh crore in 2014 to an impressive Rs 22 lakh crore today. He pointed out that India currently ranks third globally, behind only the United States (Rs 78 lakh crore) and China (Rs 49 lakh crore), but he believes India is well on its way to surpassing China, fueled by innovation, domestic manufacturing, and export growth.
Addressing the potential entry of Elon Musk’s Tesla into the Indian market, Gadkari welcomed the development but reassured that Indian automakers are more than prepared to meet the challenge. He highlighted the rapid improvements in product quality, safety standards, and technological sophistication among domestic manufacturers. He cited the Bharat New Car Assessment Program (Bharat NCAP), India’s homegrown car safety rating system, as a symbol of the country's progress. Under this system, vehicles are evaluated on stringent safety parameters and awarded star ratings — a practice now recognized by global companies that are increasingly testing their vehicles against Indian standards.
Gadkari expressed pride in the evolution of Indian automakers, noting that companies like Tata Motors, Mahindra, and Maruti Suzuki are producing vehicles that not only compete with international brands but are increasingly preferred by global consumers. He predicted that Indian manufacturers would soon dominate international markets, driven by a surge in electric vehicles, hydrogen fuel technology, and innovative production processes. "Not only EVs — we will soon export two-wheelers, three-wheelers, trucks, and buses on a massive scale. India’s auto industry is evolving fast, and with new innovations like hydrogen fuel, we’re not far from becoming the second-largest automaker globally. And after that, the top spot won’t be far behind," Gadkari asserted.
He further emphasized that the government’s vehicle scrappage policy is a game-changer for the industry, designed to boost production efficiency and lower manufacturing costs. The policy encourages recycling materials like aluminum, copper, and rubber from old vehicles, resulting in a 30% reduction in production costs for new vehicles. Gadkari explained that this not only enhances affordability for consumers but also supports environmental sustainability by reducing waste and promoting resource efficiency.
The minister also tackled questions about some states increasing taxes on electric vehicles. He acknowledged that state governments have the right to levy taxes according to their economic strategies. However, he highlighted the central government's proactive measures to support electric mobility, particularly its decision to slash GST on electric vehicles from 48% to just 5%. Gadkari reaffirmed that both the central and state governments remain committed to promoting EV adoption and building a robust EV ecosystem, with significant investments in charging infrastructure, battery technology, and incentives for manufacturers and consumers alike.
Gadkari’s vision for India’s automotive sector is rooted in the belief that technology, innovation, and policy reforms will propel the industry forward. He spoke of hydrogen fuel cells, biofuels, and advanced battery technologies as the next big breakthroughs that will revolutionize the sector. He praised Indian entrepreneurs and engineers for their resilience and creativity, predicting that Indian companies will not only dominate domestic markets but lead the global transition to sustainable transportation.
The minister concluded his speech by emphasizing that the Indian automotive industry is not just an economic powerhouse but a symbol of national pride and innovation. "We’re building world-class cars, electric buses, trucks, and bikes — all made in India. The world is watching, and they’re seeing an India that’s fast, agile, and ready to lead," he said. He expressed confidence that India’s rise in the automotive sector would create millions of jobs, drive technological advancements, and position the country as a global leader in the transportation revolution.
Gadkari’s address left no doubt that he envisions a future where India’s automotive industry stands shoulder to shoulder with global giants — not just as a competitor, but as an innovator and leader in shaping the future of mobility. His unwavering confidence in the country’s potential, combined with a clear roadmap for innovation, sustainability, and growth, paints an inspiring picture of what lies ahead for India’s automotive sector.
