Electric vehicle market in India could expand to Rs 20 lakh crore by 2030 and generate five crore jobs, Union Minister for Road Transport and Highways Nitin Gadkari said on Wednesday, The Economic Times reported.
Speaking at a summit organised by the CII ITC Centre of Excellence for Sustainable Development, Gadkari said India currently has 57 lakh registered electric vehicles, which account for 7 per cent of the overall market, according to PTI.
He said the electric vehicle sector has considerable scope for expansion, particularly in electric bus manufacturing. India has an annual requirement of around one lakh electric buses, while the current manufacturing capacity stands at only 50,000 to 60,000 units, he said.
Gadkari also reiterated the government’s target of making India’s automobile industry the largest in the world within the next five years. He acknowledged that the target would be challenging but said it was achievable.
Automobile industry expands
Gadkari said the size of India’s automobile industry has increased substantially since he took charge of the Road Transport Ministry. The industry, which was worth around Rs 14 lakh crore at that time, has now grown to around Rs 23 lakh crore.
He compared this with the automobile industry in the US, valued at Rs 78 lakh crore, and China, valued at Rs 47 lakh crore.
According to Gadkari, India’s automobile industry has strong potential for further growth because of its skilled workforce, competitive manufacturing costs and the presence of major global automobile companies. He also highlighted the export performance of Indian manufacturers, saying Bajaj Auto and Hero MotoCorp export more than half of the vehicles they manufacture.
Gadkari said the shift towards electric mobility is important for reducing India’s dependence on imported fossil fuels. The country currently spends around Rs 22 lakh crore on fossil fuel imports, which also contribute to pollution.
Along with promoting alternative fuels and electric vehicles, the government is working to reduce logistics costs and improve the competitiveness of Indian industry.
Gadkari said the development of expressways and economic corridors has helped reduce India’s logistics costs from 16 per cent to around 10 per cent, citing a report prepared by IIT Chennai, IIT Kanpur and IIM Bangalore.
The government is aiming to bring logistics costs down further to 8 per cent, he said, adding that lower logistics costs would be important for strengthening the competitiveness of Indian industries in global markets.
