Union Road Transport Minister Nitin Gadkari says India is now the world’s third-largest automobile industry. He spoke at a New Delhi conclave organised by a private news organisation. AIR News reported his remarks on 29 October 2026. According to him, the Rs 22 lakh crore industry has overtaken Japan. Moreover, he expects India to lead the world within five years.
Gadkari’s Remarks at the New Delhi Conclave
Notably, he said India has “overtaken Japan to become 3rd largest automobile industry in the world”. Also, he said good roads have cut logistics costs by 6 per cent. In addition, he credited expressways and highways with reducing travel time. Further, he said farmers are becoming key contributors to hydrogen and other energy. He added, “India can become an energy exporting country in the future.”
From Seventh to Third Since 2014
Gadkari has repeated this ranking since 2025. For instance, he addressed the PHD Chamber of Commerce and Industry in October 2025. There, he said the sector grew from Rs 14 lakh crore in 2014 to Rs 22 lakh crore. Moreover, he noted that India ranked seventh in 2014. Later, in September 2025, he valued the US industry at Rs 78 lakh crore. China stood at Rs 47 lakh crore.
What Does “Third-Largest” Measure?
Gadkari ranks the industry by its value of Rs 22 lakh crore. However, a separate ranking based on vehicle sales also exists. Earlier, in January 2023, Nikkei Asia reported that India overtook Japan in 2022 sales. In fact, India sold at least 4.25 million vehicles, as per preliminary data. Meanwhile, Japan sold 4,201,321 vehicles that year.
Policy Push Behind the Growth
The Union Cabinet approved the Rs 25,938 crore PLI Scheme for Automobile and Auto Components on 15 September 2021. Notably, it promotes advanced technology such as battery electric and hydrogen fuel cell vehicles. Also, Prime Minister Narendra Modi launched E20 petrol, a 20% ethanol blend, in 2023.
Third-Largest Automobile Industry: Key Facts for Revision
- Claim by: Nitin Gadkari, Union Road Transport Minister
- Industry value: Rs 22 lakh crore; rank 3rd, ahead of Japan
- Ahead of India: US and China
- Target: World’s largest within five years
- Sales milestone: India passed Japan in 2022 (Nikkei Asia)
- PLI outlay: Rs 25,938 crore
Why the Third-Largest Automobile Industry Matters for UPSC and UKPSC
Notably, the auto sector links manufacturing, jobs and energy security. So, remember the Rs 22 lakh crore value, the third rank and the five-year target. Also, link the claim with the difference between value and sales rankings. For official updates, also visit the Ministry of Road Transport and Highways. Next, for a related story, read about the E10 petrol debate for older vehicles.
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