Roads, highways and transport minister Nitin Gadkari has said that India’s automobile sector is strong and will continue to grow, as it exports to many more countries than the United States.
The minister made these comments in an interview to Moneycontrol, with less than a week to go for the US’ additional 25 percent Russia oil penalty to kick in on Indian goods. The US is already levying an increased 25 percent tax on Indian imports, with the Russia levy, the duty will climb to 50 percent.
“Our automobile sector is strong and continues to grow ... I am confident that the way we are working on alternate fuels, bio fuels, electric, ethanol, methanol, (and) biodiesel, we will be the number one automobile market in the world,” Gadkari told Moneycontrol in an exclusive interview.
Tatas, Mahindra and Mahindra are making good electric vehicles and won’t be impacted by Tesla’s entry, the minister said, adding the future of auto industry looks “very good”.
While India exports to the US, it also exports to other countries, Gadkari added.
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While India’s auto exports rose 14 percent year-on-year in the first half of FY25 to 2,528,248 units, it doesn’t export much to the US. In 2024, India's passenger car exports to the US were worth $8.9 million and auto parts $2.2 billion.
According to a report from the heavy industries ministry, India exported automobile and auto components worth $35 billion in FY25. Saudi Arabia, South Africa, Mexico and the United Arab Emirates are the top destinations for Indian autos.
“When I became minister of roads, transport and highways in 2014, we were at number 7 in the world. Now we are at number 3. America's size of the market is Rs 78 lakh crore, China is Rs 49 lakh crore and we are a Rs 22 lakh crore automobile market,” he added.
When asked if the Indian EV sector was ready to face competition from EV giants like Elon Musk-led Tesla, Gadkari said, “Anyone who wants to come to the Indian market can. Indian EV makers like Tatas, Mahindra are making good models."
In terms of design, quality, cost Indian automakers are making good models. “The Indian EV market is projected to reach over $110 billion by 2029 and is dominated by domestic players,” he said.
“Tesla is the latest entrant in the market and will be launching its imported Model Y SUV. However, the company faces high import duties that with lack of local manufacturing will make it prohibitively expensive for a majority of Indians.”
To a question if the government would extend more support to the EV sector, Gadkari said the segment was growing and does not need schemes or further support.
“In the coming times, I see a bright future for the Indian automobile sector,” the minister said.
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