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India Pips Japan To Becomes Third-Largest Auto Market Globally, Aims For Number 1 Position: Nitin Gadkari

Published on 31 Jul, 2025, 6:39 AM IST
Updated on 31 Jul, 2025, 6:59 AM IST
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Krishna SinhaChaudhury
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India has surpassed Japan to become the world's third-largest automobile market, with the sector now valued at Rs 22 lakh crore.

Union Road Transport and Highways Minister Nitin Gadkari has outlined an ambitious roadmap to position the country as the world's leading automobile manufacturing destination, driven by key investments in safety infrastructure and sustainable transportation technologies. The minister revealed this at the Snapdragon Auto Day in New Delhi.

Also read: Snapdragon For India Auto Day: Safe And Smart Automotive Strategy, India As Global Innovation Hub, More

India Pips Japan To Be Third-Largest Global Auto Market

India has hit a significant milestone by surpassing Japan to become the world's third-largest automobile market, with the sector now valued at Rs 22 lakh crore. This automotive powerhouse serves as the backbone of India's economy, representing the fourth-largest industrial segment nationally.

The automobile sector has become a major employment generator, providing livelihoods to approximately 4 crore individuals while contributing the largest portion of GST collections to the national treasury. 

Gadkari highlighted the government's determination to elevate India's position from third to first in global automobile manufacturing rankings.

Zero Fatality Corridors

A comprehensive road safety transformation is underway, featuring a multi-dimensional strategy encompassing vehicle engineering enhancements, infrastructure development, law enforcement strengthening, and public awareness campaigns.

The Zero Fatality Corridor initiative has identified 77 high-risk road segments spanning 15 states for immediate intervention. The government has allocated Rs 40,000 crore specifically to eliminate dangerous accident-prone locations on national highways.

Sadak Suraksha Abhiyan For Behavioural Change

The nationwide Sadak Suraksha Abhiyan campaign aims to transform driver behaviour through education and awareness. This initiative has been localised into 22 Indian languages and will use digital media platforms for maximum reach and impact.

Technology-Driven Safety Solutions And Bharat NCAP

Modern safety technologies are being mandated across vehicle categories, including anti-lock braking systems for two-wheelers, electronic stability control mechanisms for heavy commercial vehicles, and advanced driver-assistance systems. These innovations are designed to prevent collisions, monitor driver alertness, and maintain proper lane discipline.

The Bharat NCAP star rating system has created competitive pressure among automobile manufacturers to prioritise vehicle safety in their designs. Academic institutions, particularly IIT students, are conducting comprehensive road safety assessments while data analytics help identify the 100 most accident-prone districts nationwide.

Addressing Critical Driver Shortage Through Skill Development

The transport sector faces a significant shortage of 22 lakh trained drivers, prompting the establishment of 1,600 specialised driver training institutes. This Rs 4,500 crore investment program is projected to create 15 lakh employment opportunities while addressing the skills gap in professional driving.

Green Hydrogen Mission

The minister highlighted the transport sector's responsibility for 40% of India's air pollution, positioning clean fuel adoption as both an environmental imperative and economic necessity. The government is promoting multiple alternative fuel options including ethanol, methanol, bio-CNG, LNG, electric power, and hydrogen.

Hydrogen Infrastructure Development

Under the National Green Hydrogen Mission, India is conducting trials with hydrogen-powered commercial trucks while simultaneously developing nine hydrogen refuelling stations across the country. The ambitious 2030 target includes producing 5 million metric tons of green hydrogen annually, which could reduce fossil fuel imports by Rs 1 lakh crore and eliminate 50 million metric tons of CO2 emissions.

AckoDriveTag IconTags
India automobile industry
Road safety investment
Zero Fatality Corridor
Green hydrogen mission
Automobile manufacturing hub
Bharat NCAP rating
Driver training institutes
Advanced driver assistance systems
Clean fuel technology
Sadak Suraksha Abhiyan
Nitin gadkari
Snapdragon Auto Day

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