Synopsis
Prime Minister Narendra Modi calls on the Indian automotive industry to embrace global best practices and prioritize clean mobility in the drive toward a sustainable future.
On September 10, 2024, Prime Minister Narendra Modi addressed the Society of Indian Automobile Manufacturers (SIAM), where he emphasized the pivotal role of the automotive sector in driving India’s economic growth and shaping its sustainable future. Modi urged automakers to bring global best practices to India and actively contribute to the country’s mission of achieving cleaner, greener mobility. The prime minister’s speech focused on the critical need for innovation, enterprise, and sustainability to ensure that the Indian automotive sector not only thrives but also sets an example for the world to follow.
In this article, we delve into PM Modi’s message to the automotive industry, the implications for India’s economy and environment, the global trends influencing the sector, and the steps that need to be taken to ensure India’s automotive future is both sustainable and competitive.
India’s Automotive Industry: A Driver of Economic Growth
The Role of the Automotive Sector in India
India’s automotive industry has been a key contributor to the nation’s economy for decades. From job creation to contributing significantly to the gross domestic product (GDP), the sector plays a central role in India’s industrial landscape. In fiscal year 2023-2024, the automotive industry crossed the ₹20 lakh crore mark, contributing 14-15% to the country’s total goods and services tax (GST) revenue. The industry also supports millions of jobs, both directly in vehicle manufacturing and indirectly through ancillary industries such as component manufacturing, logistics, and services.
As the world’s fifth-largest automobile market, India is well-positioned to leverage its automotive sector for future growth. The industry is expected to contribute even more to the nation’s economy as demand for vehicles continues to rise domestically and as Indian manufacturers expand their global footprint.
Modi’s Vision for the Future of Indian Mobility
During his address, PM Modi acknowledged the automotive industry’s role in India’s economic success but emphasized that the future of the sector must align with broader national goals, such as sustainable development and climate action. The prime minister set forth a challenge for automakers to adopt international best practices, focusing on quality, efficiency, and sustainability.
“As we shift gears toward our collective goal of a Viksit Bharat by 2047, I am confident that organizations like SIAM will continue to bring together all stakeholders and become a force multiplier in this mission,” Modi said, referencing the vision of a developed India by 2047. The road to that future, he noted, must be one of rapid but sustainable progress, with clean mobility at the forefront.
Clean Mobility: A Key Priority for India’s Automotive Sector
Defining Clean Mobility
Clean mobility refers to the use of sustainable and environmentally friendly methods of transportation. This can include electric vehicles (EVs), hybrid vehicles, and other technologies designed to reduce carbon emissions, lower fuel consumption, and minimize environmental impacts. As India seeks to become a global leader in the fight against climate change, the shift toward clean mobility is seen as a critical step.
PM Modi emphasized the need for the automotive sector to prioritize clean mobility, stating, “Working on greener and cleaner mobility is a vital step in this direction. It is important that this climate-conscious and sustainable vision resonates with domestic and international partners.”
The Government’s Push for Electric Vehicles
India’s government has already taken significant steps to promote the adoption of electric vehicles (EVs) as part of its clean mobility agenda. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, which was launched in 2015 and extended to FAME II in 2019, offers incentives to consumers and manufacturers alike to encourage the production and use of electric vehicles.
As a result, the electric vehicle market in India has grown substantially, with both domestic and international manufacturers investing heavily in EV technologies. However, challenges such as the lack of charging infrastructure, high costs of batteries, and consumer hesitance remain significant barriers to widespread EV adoption.
Global Trends in Clean Mobility
Global automotive trends have increasingly shifted toward clean mobility, with countries around the world setting ambitious goals to phase out internal combustion engines (ICE) in favor of electric and hybrid vehicles. The European Union, for instance, has set a goal of ending the sale of new petrol and diesel cars by 2035, while countries like Norway aim to achieve 100% electric vehicle sales by 2025.
India’s automotive sector must stay ahead of these trends to remain competitive in the global market. By adopting clean mobility practices and integrating innovative technologies, Indian automakers can not only contribute to the country’s climate goals but also carve out a leading position in the global automotive industry.
Global Best Practices: A Necessity for India’s Automotive Growth
Importance of Adopting Global Best Practices
One of the central messages in PM Modi’s address was the need for the Indian automotive industry to adopt global best practices. Best practices in the automotive sector include adherence to international safety standards, the adoption of advanced manufacturing technologies, and the development of environmentally sustainable production processes.
“Further, at this critical juncture for India and the world, it is essential that our automobile sector sets not only an example for others to follow but also works toward bringing global best practices to India,” Modi stated.
By embracing these best practices, Indian automakers can enhance the quality and safety of their vehicles, reduce production costs through efficiency, and improve environmental performance. In doing so, they will be better positioned to compete with global automakers and meet the growing demands of consumers, both in India and abroad.
Innovations Driving Global Automotive Success
In the global automotive industry, innovation is key to success. From the integration of artificial intelligence and machine learning in manufacturing processes to the development of autonomous vehicles, innovation has the potential to transform how cars are made, driven, and maintained.
Indian automakers have begun to explore some of these innovations, particularly in the electric vehicle space. However, there is still a long way to go in terms of adopting cutting-edge technologies such as connected vehicles, advanced driver-assistance systems (ADAS), and autonomous driving features. By looking to global best practices, Indian companies can accelerate their innovation efforts and stay ahead in the competitive automotive landscape.
The Role of SIAM in India’s Automotive Future
SIAM’s Role as a Force Multiplier
The Society of Indian Automobile Manufacturers (SIAM) plays a central role in coordinating and promoting the interests of India’s automotive industry. With members from across the country’s leading automakers, SIAM serves as a platform for dialogue, collaboration, and policy advocacy. It helps bring together stakeholders from government, industry, and civil society to address the challenges and opportunities facing the automotive sector.
In his address, PM Modi expressed confidence in SIAM’s ability to act as a force multiplier, driving innovation and progress in the industry. He noted that SIAM’s annual conventions and discussions provide a catalyst for change, enabling the industry to adapt to evolving market demands and regulatory frameworks.
SIAM’s Vision for Sustainable Growth
As SIAM leads the industry’s efforts to embrace clean mobility and global best practices, the organization’s vision for sustainable growth is critical. SIAM has been actively working with the government to promote electric vehicles, improve safety standards, and develop policies that support the automotive sector’s transition to a cleaner, more sustainable future.
In collaboration with international partners, SIAM also facilitates the exchange of knowledge and best practices, ensuring that Indian automakers remain competitive on the global stage.
Future-Ready Infrastructure for Indian Mobility
Building the Infrastructure for Clean Mobility
India’s journey toward clean mobility requires the development of future-ready infrastructure, particularly in terms of electric vehicle charging stations, high-speed roads, and multi-modal transportation hubs. PM Modi highlighted the importance of this infrastructure in his address, stating, “The nation is witnessing the creation of future-ready infrastructure, such as state-of-the-art expressways, high-speed railways, and other forms of multi-modal connectivity that reach every corner.”
In recent years, the Indian government has made significant investments in infrastructure projects designed to support the country’s growing mobility needs. The development of expressways and highways has helped reduce travel time between cities, while high-speed railways have improved connectivity in key regions. The construction of electric vehicle charging stations across major highways and urban centers is also gaining momentum, with both public and private players involved in the process.
The Holistic Approach to Mobility Growth
PM Modi emphasized that the benefits of India’s mobility growth should be shared by all, not just a select few. The prime minister’s vision for a “holistic approach” ensures that economic development in the automotive sector reaches every part of the country, creating jobs, improving connectivity, and driving regional growth.
One of the key pillars of this holistic approach is the government’s push for multi-modal transportation systems. By integrating different modes of transport—such as rail, road, and waterways—India can achieve a more efficient and sustainable mobility system that benefits both urban and rural populations.
Key Learning Points
| Key Topic | Details |
|---|---|
| Clean Mobility | Emphasizing the shift toward electric vehicles and sustainable transportation to meet climate goals. |
| Global Best Practices | Urging Indian automakers to adopt international standards for quality, safety, and sustainability to compete globally. |
| SIAM’s Role | Acting as a platform for collaboration, policy advocacy, and driving innovation within the Indian automotive industry. |
| Infrastructure Development | Building future-ready infrastructure, including EV charging stations, high-speed railways, and expressways to support clean mobility. |
| Sustainable Economic Growth | Ensuring the automotive sector contributes to inclusive economic growth, creating jobs and improving mobility across India. |
| Government Policies | Highlighting government initiatives like FAME II |
FAQ
1. What is PM Modi’s vision for the Indian automotive industry?
PM Modi envisions the Indian automotive industry adopting global best practices, focusing on innovation, and leading the shift toward clean mobility to drive sustainable economic growth.
2. What are global best practices in the automotive industry?
Global best practices include adhering to international safety and quality standards, adopting advanced manufacturing technologies, and prioritizing environmentally sustainable production methods.
3. How does clean mobility contribute to India’s climate goals?
Clean mobility, which includes the use of electric and hybrid vehicles, helps reduce carbon emissions, lower fuel consumption, and mitigate environmental impact, aligning with India’s climate change mitigation strategies.
4. What role does SIAM play in the automotive industry?
The Society of Indian Automobile Manufacturers (SIAM) acts as a platform for collaboration between industry stakeholders and the government, driving policy advocacy, innovation, and sustainable growth in the automotive sector.
5. What steps is the Indian government taking to promote electric vehicles?
The Indian government has launched initiatives like the FAME scheme, which provides incentives for the production and purchase of electric vehicles. Additionally, it is investing in charging infrastructure and policy frameworks to support clean mobility.
References (with full URLs)
- All India Institute of Medical Sciences (AIIMS) – https://www.aiims.edu
- Society of Indian Automobile Manufacturers (SIAM) – https://www.siam.in
- Faster Adoption and Manufacturing of Electric Vehicles (FAME II) Scheme – https://www.fame-india.gov.in
- Prime Minister’s Office (PMO) – https://www.pmindia.gov.in
- Ministry of Heavy Industries, Government of India – https://www.mhi.gov.in
Sunil Garnayak is an expert in Indian news with extensive knowledge of the nation’s political, social, and economic landscape and international relations. With years of experience in journalism, Sunil delivers in-depth analysis and accurate reporting that keeps readers informed about the latest developments in India. His commitment to factual accuracy and nuanced storytelling ensures that his articles provide valuable insights into the country’s most pressing issues.
