Minister of Heavy Industries and Steel HD Kumaraswamy on Wednesday called on India’s automobile and component manufacturers to step up investments in clean and emerging technologies as the government looks to position the country as a global manufacturing hub for advanced mobility.
Addressing the 66th annual session of the Automotive Component Manufacturers Association of India (ACMA), Kumaraswamy said the industry’s next phase of growth must go beyond serving the domestic market and focus on building products and technologies that can compete globally.
“I urge the automobile and auto component industry to invest more boldly in cleaner, efficient and emerging technologies, not merely to make in India but to make for the world,” Kumaraswamy said.
He said the next phase for the industry should be driven by higher scale, deeper localisation and faster innovation.
Kumaraswamy said the automobile and component sector would play a central role in India’s manufacturing ambitions, given its linkages with sectors such as steel, electronics, engineering, chemicals, logistics and services. The industry also supports a large MSME ecosystem and millions of jobs.
Localisation Key to EV Transition
The minister said India’s transition towards electric mobility should not be judged only by the number of EVs sold.
“It must also be measured by how much technology is designed in India, how much value is added domestically, how many MSMEs participate in the new supply chain and how effectively Indian products compete in global markets,” he added.
The comments come as the government seeks to deepen localisation across batteries, electric powertrains and other critical components used in electric vehicles.
Kumaraswamy said the Production Linked Incentive scheme for Advanced Chemistry Cell battery storage, with an outlay of ₹18,100 crore, aims to create 50 GWh of domestic battery manufacturing capacity.
The government has also initiated measures to develop domestic capacity for sintered rare-earth permanent magnets, a key input for electric motors.
“This initiative will help reduce strategic input dependence and strengthen supply chain security,” Kumaraswamy said.
Auto PLI Investments at ₹45,477 Crore
Kumaraswamy also highlighted progress under the automobile and auto component PLI scheme.
As of June 30, 2026, approved applicants under the scheme had reported investments of ₹45,477 crore and created more than 67,000 jobs, according to the minister.
He said the government’s incentive programmes were aimed at encouraging investment, domestic value addition and advanced technology manufacturing while supporting the shift towards cleaner mobility.
Government Steps Up EV Support
The minister also outlined the government’s growing support for electric mobility under the PM E-DRIVE scheme.
The scheme’s outlay has been increased by ₹1,000 crore to ₹11,900 crore, with the enhanced allocation aimed at continuing support for electric two-wheelers.
The scheme now aims to support about 45.79 lakh electric two-wheelers.
Kumaraswamy said more than 25.66 lakh electric two-wheelers and 2.75 lakh electric three-wheelers had been supported so far. Support has also been extended to 53 electric trucks.
The government has allocated ₹4,391 crore for the deployment of 14,028 electric buses, of which around 13,800 have already been allocated.
Charging infrastructure is also being expanded alongside vehicle adoption. The government has earmarked ₹2,000 crore for public charging infrastructure, while proposals worth ₹729 crore covering 7,254 chargers have been approved.
Separately, the PM e-Bus Sewa Payment Security Mechanism, with an outlay of ₹3,435 crore, is aimed at supporting the deployment of more than 38,000 electric buses by providing payment security to operators. Kumaraswamy said 27,555 e-buses have already been registered under the mechanism.
India Should Aim to Lead Global Mobility Transition
Kumaraswamy said the government would continue working with ACMA, the Society of Indian Automobile Manufacturers (SIAM) and other industry stakeholders to improve implementation of schemes and address operational issues.
He said India’s ambition should ultimately extend beyond becoming a large automobile market or manufacturing base.
“India should not merely participate in the global mobility transition; India should help lead it,” Kumaraswamy said.
(With inputs from Ketan Thakkar, Shahkar Abidi, Mukul Yudhveer Singh, Prerna Lidhoo)