India’s automotive sector, currently a significant engine of the nation’s economy and an increasingly formidable player on the global stage, is being tasked with a pivotal role in achieving the country’s “Vision 2047”—a future where India stands as a developed nation. Dr. Pawan Goenka, Past President of the Society of Indian Automobile Manufacturers (SIAM) and Chairman of the Steering Committee on Advancing Local Value-Add and Exports (SCALE) for the Ministry of Commerce & Industry, recently outlined a comprehensive mandate for the industry.
The sector’s recent performance underscores its potential. Over the last four to five quarters, India has seen its automotive exports surge by almost 20%, a rate three to four times that of domestic growth. This momentum feeds an aspiration for 50% of our production going for export, highlighting the industry’s importance not merely in numbers, but in economic contribution, export revenue, technological advancement, and national pride. “It’s about the economic contribution that the industry makes, about the export revenue that we get, about technology availability, about national pride. It’s also a gateway to advanced manufacturing and the strongest ecosystem of MSMEs in the country” noted Dr Goenka at SIAM’s 65th annual convention in Delhi.
Dr. Goenka’s address emphasized on the imperative for the auto industry to embrace sustainable mobility, broadly defined as “everything that mobility will do to contribute to Vision 2047”. This vision includes a $32 trillion economy, energy independence, and technology leadership. For the automotive industry, this necessitates a profound transition from its fossil-fuel past. Dr. Goenka unequivocally stated, “we have to move away from fossil fuel vehicles… and end up with fossil fuel-free transportation. Whether it is electric, whether it is hydrogen, that can grow as time goes on”
Crucially, he pinpointed hydrogen as an area ripe for India to assert global leadership. He urged a greater focus, noting, “India needs to focus a little bit more on hydrogen than what we have been able to achieve so far. And that’s an area where we can take global leadership, because the whole world right now is at a very infant stage”. This strategic emphasis aligns with the government’s National Green Hydrogen Mission (2023), which targets a 5 million metric tonne capacity by 2030.
Beyond the fuel source, the industry’s mandate extends to a holistic re-imagination of mobility. Dr. Goenka stressed the continuation of the safety drive, asserting that “sustainable transport and mobility does require that our roads are safe”. Furthermore, an aggressive move towards software-driven vehicles is essential, alongside promoting a circular economy through battery recycling, rare-earth recovery, and remanufacturing auto parts, which could significantly cut raw material imports and foster a new industry. The development of shared mobility solutions also remains a priority.
Addressing vulnerabilities is another critical responsibility for the industry. India’s current dependence on rare-earth permanent magnets, battery cells, and power electronics requires concerted action. Dr. Goenka called upon the industry to invest in R&D, local capacity to mitigate these dependencies, complementing government initiatives like the National Critical Mineral Mission (NCMM).