Prime Minister Narendra Modi on Thursday said that the automobile industry has been the torchbearer of the country’s Make-in-India initiative and boosted global confidence in Indian manufacturing.
Overall, India is one of the largest automobile markets in the world. At present, it is the third largest passenger vehicle (PV) market and the largest two-wheeler market globally.
In Q1 FY26, the PV volumes dropped 1.4% y-o-y at 10,11,882 units, the commercial vehicle (CV) volumes slipped 0.6% y-o-y at 2,23,215 units, the three-wheeler volumes remained flat at 1,65,211 units and the two-wheeler volumes declined 6.2% y-o-y at 46,74,562 units, according to official data from the industry body Society of Indian Automobile Manufacturers (SIAM).
“The automobile industry, a key driver of the economy, has significantly improved mobility and quality of life. It has been a torchbearer of the Make-in-India initiative, boosting global confidence in Indian manufacturing and positioning India as a hub of automotive excellence,” PM Modi said in a written communication at the 65th SIAM Annual Convention.
The Prime Minister’s message was read by SIAM president Shailesh Chandra at the convention.
“Powered by strong policy frameworks and visionary reforms, India is moving rapidly towards building a future-ready transportation ecosystem. This integration of modern technology with world-class infrastructure forms the backbone of India’s ambitious growth story in mobility,” PM Modi said.
He observed that the automobile sector is also embracing sustainability, focusing on green tech, electric vehicles (EVs) and sustainable alternatives. “These advancements strengthen India's clean mobility goals, while creating opportunities in design, production and deployment. The growth of startups, especially in energy storage, is encouraging,” he added.
Although India’s EV sector is advancing, the pace of adoption remains inconsistent.
At present, electric models account for around 5% of the PV volumes, less than 2% of the CV volumes, over 62% of the three-wheeler volumes and nearly 8% of the two-wheelers volumes, in India.
PM Modi said that as the nation advances towards global leadership in green and smart transportation, opportunities for investment and collaboration are immense.
“As we move towards the vision of ‘Viksit Bharat’, it is essential for the government and industry to work together to achieve true self-reliance across the entire automobile manufacturing value chain,” the Prime Minister noted.
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