India's Auto Industry has reached a historic milestone by becoming the world's third-largest automobile industry.
But Union Road Transport and Highways Minister Nitin Gadkari says the country cannot afford to slow down.
Speaking at the inauguration of Prawaas 5.0 in Gandhinagar, Gujarat, Gadkari said India must now focus on expanding Bus Manufacturing, which has failed to keep pace with the rapid growth of the automotive sector.
He said the industry's next phase of growth should be driven by stronger public transport, cleaner technologies, and higher production of buses.
"When I took charge, India's automobile industry was valued at around Rs 14 lakh crore and ranked seventh globally. Today, it has overtaken Japan to become the world's third-largest automobile industry," he said.
The minister highlighted that India's automobile industry is now valued at nearly Rs 14 lakh crore and contributes around Rs 4.5 lakh crore in revenue to the Central and State governments. However, despite this remarkable growth, India manufactures only 70,000-80,000 buses every year, a number he believes is far below the country's future requirements.
Addressing industry leaders, fleet operators, policymakers, and manufacturers at Prawaas 5.0, India's flagship multimodal transport event organized by the Bus and Car Operators Confederation of India (BOCI), Gadkari praised the remarkable progress made by the country's automobile sector.
He said India has overtaken Japan to become the third-largest automobile industry in the world, reflecting the strength of domestic manufacturing, rising demand, and continued policy support.
Sharing the sector's economic contribution, Gadkari said:
While celebrating these achievements, the minister stressed that success should not be measured only by vehicle sales. According to him, public transport must receive equal attention if India wants to build an efficient and sustainable mobility ecosystem.
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Despite the industry's rapid expansion, Gadkari expressed concern over the limited number of buses being manufactured every year.
He noted that India currently produces 70,000 to 80,000 buses annually, which is insufficient to meet the increasing demand for public transport across cities and rural areas. With urbanization accelerating and passenger traffic rising, he said the country needs a significant increase in bus production.
The minister urged manufacturers to invest in modern technologies and develop buses that are safer, more comfortable, and environmentally friendly.
According to Gadkari, expanding bus manufacturing will:
Gadkari also called on manufacturers to focus on innovation instead of relying only on conventional technologies. He encouraged the industry to accelerate the production of electric buses and vehicles powered by alternative fuels while investing in advanced battery technologies that can improve efficiency and reduce emissions.
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