Nitin Gadkari: India’s electric vehicle market to grow to $1

Nitin Gadkari, India’s Minister of Road Transport and Highways, spoke about various issues at the 64th General Assembly of the Society of Indian Automobile Manufacturers (SIAM), with one of the most important issues focusing on the growing electric vehicle market in India. In terms of numbers, the minister estimated that there are currently more than 3 million electric vehicles registered in India. He also estimated that by 2030, the Indian electric vehicle market could reach 10 million units sold annually and create 50 million jobs. On encouraging the development of electric vehicles, the Union minister said that while he is not “against” diesel and petrol, he does believe that public health should be protected from the growing pollution.

For the uninitiated, Gadkari has been a passionate advocate for sustainable energy. Last December, at the Electric Vehicle Expo, he made similar remarks about his expectations for electric vehicle sales by 2030.

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Besides electric vehicles, Gadkari also discussed the possibilities in the scrap vehicle sector and the use of alternative fuels like hydrogen and CNG to gain environmental and economic advantages. He said the scrap vehicle sector could be beneficial for both the government and the automakers. Currently, there are 63 scrap vehicle centres operating in India, 60 under development and 40 in the pipeline.

Gadkari maintained that these figures are not enough to cater to India’s car stock. At the SIAM event, the Union Minister encouraged carmakers to set up scrapping centres, citing a 12 per cent and 15 per cent growth in car sales in Germany and the US respectively. In India, incomes could increase by 18-20 per cent and 35,000 jobs could be created. He also thanked SIAM for offering a 3 per cent discount on the purchase of a new car in exchange for scrapping an old one.

He also said, “The automobile industry plays a key role in achieving the Prime Minister’s vision of transforming India into a $5 trillion economy and elevating it to the third largest economy in the world. Our goal is to scale it up to become the number one automobile manufacturing industry in the world. As we aim to become carbon neutral by 2070, innovation and sustainable practices in the automotive industry are crucial.”

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Vinod Aggarwal, President, SIAM and Managing Director and CEO, Volvo Eicher Commercial Vehicles Ltd. said, “The automotive industry is keeping pace and setting standards for sustainable growth. The automotive sector contributes 6.8% to the GDP and last year alone saw a staggering growth of 12.5% ​​with turnover soaring to Rs 2,000 crore. Looking ahead to ‘Viksit Bharat 2047’, SIAM’s commitment to decarbonisation and safety is unwavering. With initiatives like the FAME scheme driving a 90% growth in electric passenger vehicles, coupled with ethanol and gas fuels, we are moving towards cleaner and greener mobility.”