At FADA’s 7th Auto Retail Conclave, India’s auto industry was positioned for long-term global growth, supported by clean technologies, cost advantages, and expanding export capacity.
10 Sep 2025 | 4607 Views | By Darshan Nakhwa and Yukta Mudgal
Union Minister for Road Transport and Highways Nitin Gadkari has set an ambitious target for India’s automobile sector, to make it the world’s largest within the next five years. Speaking at the Federation of Automobile Dealers Associations’ (FADA) 7th Auto Retail Conclave, Gadkari said the combination of cost competitiveness, quality, ...
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Union Minister for Road Transport and Highways Nitin Gadkari has set an ambitious target for India’s automobile sector, to make it the world’s largest within the next five years. Speaking at the Federation of Automobile Dealers Associations’ (FADA) 7th Auto Retail Conclave, Gadkari said the combination of cost competitiveness, quality, skilled manpower, and rapid adoption of new technologies positions India to surpass both the United States and China.
“When I took charge as minister, the size of this industry was ₹14 lakh crore. We were ranked seventh in the world. A few months ago we surpassed Japan, and are now the third-largest market in the world,” he said. “The number one is the US, where the size of the automobile industry is ₹78 lakh crore. Second is China at ₹49 lakh crore, and India stands at ₹32 lakh crore.”
“By developing alternative fuels, biofuels, battery chemistries, new technology, and new innovation, I am confident that within five years our target is to make India number one in the world. It is difficult, but not impossible. Because when you look at the cost and quality of our vehicles, the quality is good and the cost is less,” he stated.
The minister stressed that India’s rise will be anchored in cleaner technologies from electric and hydrogen to ethanol, methanol, and biofuels. “People say you are supporting all alternative fuels, so there is confusion about what will happen. Don’t worry. The demand for petrol and diesel vehicles will continue to rise. That is the big challenge, because automobile manufacturing is growing 15-20 percent, and the international market is also very huge,” he said.
Gadkari reiterated that India’s move towards electric mobility will be a gradual, long-term process and not something that can be achieved overnight. “Within four months or six months you are not going to replace all the vehicles. It is a process for years to come,” he said.
Gadkari highlighted the growing confidence of global automakers in India, citing it as proof of the sector’s expanding potential. “Maruti Suzuki, Hyundai, and even Mercedes are scaling up their presence. The Mercedes chairman told me they plan to expand production in India and export electric models from here to markets across the world,” he said.
According to him, India offers a unique blend of advantages that few markets can match: affordable raw materials, low power costs, and the largest pool of young and skilled manpower in the world. “That is the reason our production cost is comparatively less,” Gadkari said. He cited JCB’s India operations as an example, where equipment manufactured locally is exported to developed markets such as the US with no compromise on quality.
Gadkari said India’s industrial ecosystem has matured to a point where it can sustain large-scale exports across segments–from cars and two-wheelers to construction and farm equipment. “Our ecosystem is well developed, giving us enormous export potential. We have every capability needed to make that mark,” he said.