Union Minister for Road Transport and Highways Nitin Gadkari said India has the potential to become the world’s number one automobile industry, driven by innovation, quality and competitive pricing.
Addressing the 66th Annual Convention of the Society of Indian Automobile Manufacturers (SIAM) in New Delhi, Gadkari said the automobile sector is currently valued at more than ₹22.75 lakh crore, contributes nearly 15 per cent of GST collections and supports around four crore direct and indirect jobs.
Editorial Insight
Key Highlights
Important points readers should notice.
Global ambition: India is increasingly positioning its automobile sector as a global manufacturing and export hub.
Safety-first approach: Bharat NCAP 2.0 will expand the scope of vehicle safety assessment.
Driver accountability: The proposed points system could link repeated violations with licence suspension or cancellation.
Cleaner mobility: Commercial-vehicle replacement is being combined with pollution reduction and fleet modernisation.
He said India’s automobile exports grew by 24 per cent during 2025-26, reflecting the sector’s expanding global presence. Gadkari expressed confidence that the industry’s contribution to India’s economic growth will continue to increase.
The Minister also highlighted the progress of Bharat NCAP, saying more than 30 vehicle models from 11 companies have already been certified. He announced that Bharat NCAP 2.0 will come into effect from October 2027, with wider safety assessments covering areas including crash avoidance, pedestrian protection and post-crash evacuation.
On road safety, Gadkari said the government is working on a graded point system for driving licences and vehicle registration certificates. Repeated traffic violations could lead to suspension or cancellation of licences, while responsible drivers could receive incentives.
Editorial Analysis
Why This Matters
The automobile industry is a major contributor to India’s manufacturing, employment, exports and tax revenues. Stronger safety and cleaner-mobility measures could support its next phase of growth.
He also called on automobile companies to establish driver-training, vehicle-fitness and scrapping centres, particularly in aspirational districts, through CSR initiatives and viable business models.
Gadkari further highlighted stricter safety requirements for buses, including mandatory type approval and digital inspections. He said testing charges have been reduced and approval timelines shortened.
On cleaner mobility, the Minister highlighted the PARIVARTAN Scheme for the National Capital Region, which aims to encourage replacement of older commercial vehicles with BS-VI and electric vehicles through incentives such as road-tax waivers, registration-fee exemptions and loan support.
