Union Minister Nitin Gadkari Addresses 66th Annual Convention Of Society Of Indian Automobile Manufacturers
Road Transport and Highways Minister Nitin Gadkari today emphasised that India has the potential to become the world’s number one automobile industry, driven by innovation, quality and competitive pricing.
Addressing the 66th Annual Convention of the Society of Indian Automobile Manufacturers (SIAM) in New Delhi, Mr Gadkari said the sector, currently valued at over 22.75 lakh crore rupees, contributes nearly 15 per cent of the country’s GST collections and supports around four crore direct and indirect jobs.
He highlighted that India’s automobile exports grew by 24 per cent during 2025-26. The Union Minister also expressed confidence that the industry’s contribution to the country’s economic growth will continue to expand.
Describing the Bharat New Car Assessment Program (NCAP) as a major success story, Mr Gadkari noted that more than 30 vehicle models from 11 companies have already been certified. He said the programme has significantly reduced testing costs and strengthened the credibility of Indian vehicles in global markets.
He also announced that Bharat NCAP 2.0 will come into effect from October 2027, with enhanced safety standards covering crash avoidance, pedestrian protection and post-crash evacuation.
Emphasising road safety, the Union Minister said the government is planning to introduce a graded point system for driving licences. He said that under this initiative, repeated traffic violations could lead to licence suspension or cancellation, while responsible drivers may receive insurance and other incentives.
Calling for greater industry participation in driver training, Mr Gadkari urged companies to establish driving training, vehicle fitness and scrapping centres, particularly in aspirational districts, through CSR initiatives and viable business models to address the shortage of skilled drivers.
The Minister also announced stricter safety norms for buses, saying revised bus body regulations requiring mandatory type approval and digital inspections are now in force to improve passenger safety. He added that testing charges have been reduced and approval timelines shortened to support manufacturers.
On cleaner mobility, Mr Gadkari highlighted the recently launched Parivartan Scheme for the National Capital Region, aimed at replacing older commercial vehicles with Bharat Stage VI (BS-VI) and electric vehicles through incentives including road tax waivers, registration fee exemptions and loan support. He said the scheme is expected to facilitate the scrapping of over two lakh older trucks and buses while strengthening the vehicle scrapping ecosystem in the National Capital Region.
