India’s Automotive Sector Key To Economic Growth, Should Focus On Green & Clean Mobility: PM Modi

Prime Minister Narendra Modi has asked the automotive industry to embrace global best practices in India while advancing green and clean mobility solutions.

In a written address to the 64th Annual Convention of the Society of Indian Automobile Manufacturers (SIAM) yesterday (September 10), Modi highlighted that the automotive sector will play a key role in driving higher economic growth, which will be further fueled by rising demand, PTI reported.

SIAM is the apex national body representing all major vehicle and engine manufacturers in India.

“As we shift gears towards our collective goal of a Viksit Bharat by 2047, I am confident that organisations like SIAM will continue to bring together all stakeholders and become a force multiplier in this mission,” he said.

The PM emphasised that the path forward requires India’s rapid and sustainable progress.

“Working (on) greener and cleaner mobility is a vital step in this direction. It is important that this climate-conscious and sustainable vision resonates with domestic and international partners,” he added.

“Further, at this critical juncture for India and the world, it is essential that our automobile sector set not only an example for others to follow, but also work towards bringing global best practices to India. I am confident that the discussions and deliberations during the Annual Convention will serve as a catalyst for this,” Modi said.

The PM further added that India’s automotive sector has experienced remarkable growth over the past decade, attributing this to both the country’s expanding economy and the crucial role played by the automotive industry.

During the event, Vinod Aggarwal,  president, SIAM and managing director & CEO, Volvo Eicher Commercial Vehicles Ltd, said, “The Indian Automotive Industry has seen domestic sales growing by 12.5%  and all four segments have posted growth in the last financial year.”

It is pertinent to note that the Indian automotive industry contributes 6.8% to national GDP and 40% to manufacturing GDP, making India the third-largest automotive market, surpassing Japan.

Addressing the annual convention of SIAM, transport minister Nitin Gadkari said that annual electric vehicle (EV) sales in India will touch the 1 Cr mark by 2030. He added that the homegrown EV market will become an INR 20 Lakh Cr opportunity by 2030.