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Press Release

Govt working to make India an automobile manufacturing hub in next 5 years: Nitin Gadkari

Nov 06, 2020

NEW DELHI, 06 November 2020: Mr Nitin Gadkari, Minister of Road Transport and Highways & MSME, Govt of India, today said that the government is working towards making India a global automobile manufacturing hub in the next five years. The government is already making policies to support the industry, he added.   

  

Addressing the virtual 'Electric Mobility Conference 2020', organized by FICCI Karnataka State Council, Mr Gadkari said, "The future is very bright and India has the potential to become the largest Electric Vehicle (EV) market in the world as the government continues to push for EV adoption," he added. 

  

Mr Gadkari further said that Indian manufacturers have the capability to make efficient EVs that can not only create more jobs but also provide opportunities for exports. "e-Mobility is going to be the future mode of transport with greater efficiency and less impact on the environment. Import of crude oil and air pollution are two major concerns for the country. We need to have an integrated approach for EV," he added. 

  

While responding to a suggestion by Dr Pawan Goenka, MD, Mahindra and Mahindra Limited to put EVs under Priority Sector Lending, Mr Gadkari assured of extending all necessary support. "I would suggest FICCI draft a note that I can propose to the Finance Ministry. I assure of my support in trying to get the same sanctioned," assured Mr Gadkari. 

  

He further urged FICCI and other stakeholders to come up with an integrated approach towards developing the EV sector in India. Referring to the NITI Aayog report, Mr Gadkari said that India needs a minimum of 10 GWs per hour of cells by 2022, which will be expanded to 50 GWs by 2025. "We need to encourage the manufacturing of these cells in India. I urge the industry to think about manufacturing e-batteries in the country. We need to have a policy that promotes cost-effectiveness, and is import substitute, pollution-free and indigenous," he emphasized. 

  

Mr Gadkari also said that the government is working to launch an e-Highway between Delhi and Mumbai where e-buses and trucks would run. "We are going ahead with a pilot project; the Delhi-Mumbai corridor will become the lifeline of India and we plan to install new electric roads. Electricity as a fuel is available in the country, hence mass rapid transport on electricity is the most important solution for the country," he added. 

  

EV makers, he said, must decentralize their supply chains and companies need to focus on procuring raw materials and production of battery cells locally on a continued basis. Road transport in the country is undergoing a shift and he urged everyone to adopt eco-friendly mobility solutions. "I hope to see cleaner and more sustainable innovation from the industry as we move towards a greener tomorrow," noted Mr Gadkari.  

  

Dr Pawan Goenka, Managing Director, Mahindra and Mahindra Limited said that India has a huge opportunity to become the world leader in the shared mobility and last-mile applications of EV to become suppliers of technology and products to the world. He said that businesses must invest in technology development and that India must have its own IPR. He also said that EVs can make a big contribution to Atmanirbhar Bharat. "With lower GST, fame incentives, and state incentives, the govt has done its bit. The onus now lies on the industry, service providers & the end-users to help in the adoption of EVs," he added. 

  

Mr Ullas Kamath, Chairman, FICCI Karnataka State Council & Joint MD, Jyothy Labs Limited said, "FICCI strongly feels that India must continue to encourage EVs along with all other Electrified Vehicle technologies, such as Plug-in Hybrid EV, Strong Hybrid EVs & Fuel Cell EVs along with electrification of the transport sector to lessen air pollution, achieve fuel security and technology leadership in this sector. "Karnataka is one of the first movers in adopting EV technology and had announced the policy in 2017. The Govt of Karnataka is planning to set up an EV Cluster for companies who want to invest in this sector," he added. 

  

Mr Shekhar Viswanathan, Chairman, FICCI EV Committee and Vice Chairman and Whole-time Director, Toyota Kirloskar Motor Private Limited said that with the advent of GST and subsequent reduction for EVs shows that the government is fully supportive. He further added that the shift towards electrification can't be achieved without creating a vibrant manufacturing eco-system for EV parts in the country. This is a challenge that will require collaboration between the industry, government along with state governments and conducive policies that will facilitate investment viability for local manufacturing, he noted. 

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