Union Minister for Road Transport and Highways Nitin Gadkari announced that India is now the world’s third-largest automobile industry, surpassing Japan. The minister said the sector has witnessed remarkable growth over the past decade and is now a major contributor to the country’s economy, employment and government revenue.
Speaking at the inauguration of Prawaas 5.0, India’s largest public transport exhibition, Gadkari highlighted the industry’s rapid expansion while stressing the need to significantly increase domestic bus manufacturing to support India’s growing public transport requirements.
India’s automobile industry has grown rapidly
Gadkari said that when he assumed office, India’s automobile industry was valued at around ₹14 lakh crore and ranked seventh globally. Today, the sector has climbed to the third position worldwide, overtaking Japan.
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The industry now contributes nearly ₹4.5 lakh crore in revenue to the central and state governments and supports employment for around 4.5 crore people, making it one of the country’s largest economic sectors.
India needs more buses to strengthen public transport
Despite the industry’s growth, Gadkari pointed out that India’s public transport infrastructure requires a major boost. According to the minister, the country needs nearly three lakh buses, but domestic manufacturers currently produce only 70,000 to 80,000 buses each year.
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He said expanding bus manufacturing capacity will be essential to improve urban and intercity public transport while supporting India’s long-term mobility goals.
Falling battery prices are accelerating EV adoption
Gadkari also highlighted the sharp decline in lithium-ion battery prices, stating that costs have dropped from around USD 150 per kWh to nearly USD 50 per kWh. Lower battery prices are making electric vehicles more affordable and commercially viable across different segments.
He added that India is also investing in next-generation battery technologies, including:
- Aluminium-ion batteries
- Zinc-ion batteries
- Sodium-ion batteries
These emerging technologies are expected to strengthen India’s clean mobility ecosystem while reducing dependence on conventional lithium-ion batteries in the future.
Focus on sustainable mobility
The minister said the government’s focus remains on expanding public transport, encouraging cleaner mobility solutions, and supporting domestic manufacturing. Increasing bus production and advancing battery technology are expected to play a key role in meeting India’s future transportation needs.
Indrani Priyadarshini is a journalist and editorial professional specialising in technology, artificial intelligence, smart cities, green energy, and digital transformation. With over four years of experience in tech journalism and digital media, she is known for turning complex industry developments into clear, engaging, and insightful stories. Her expertise spans reporting, editorial strategy, digital publishing workflows, and in-depth coverage of emerging technologies shaping the future.
